Product Cost Method of Product Pricing La Femme Accessories Inc. produces women's handbags. The cost of producing 1,100 handbags is as follows: Direct materials $14,600 Direct labor 7,400 Factory overhead 6,400 Total manufacturing cost $28,400 The selling and administrative expenses are $28,700. The management desires a profit equal to 14% of invested assets of $498,000. If required, round your answers to nearest whole number. a. Determine the amount of desired profit from the production and sale of 1,100 handbags. $ b. Determine the product cost per unit for the production of 1,100 handbags. $per unit c. Determine the product cost markup percentage for handbags. % d. Determine the selling price of handbags. Round your answers to nearest whole value. Cost $per unit Markup $per unit Selling price $per unit
Product Cost Method of Product Pricing La Femme Accessories Inc. produces women's handbags. The cost of producing 1,100 handbags is as follows: Direct materials $14,600 Direct labor 7,400 Factory overhead 6,400 Total manufacturing cost $28,400 The selling and administrative expenses are $28,700. The management desires a profit equal to 14% of invested assets of $498,000. If required, round your answers to nearest whole number. a. Determine the amount of desired profit from the production and sale of 1,100 handbags. $ b. Determine the product cost per unit for the production of 1,100 handbags. $per unit c. Determine the product cost markup percentage for handbags. % d. Determine the selling price of handbags. Round your answers to nearest whole value. Cost $per unit Markup $per unit Selling price $per unit
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 16E
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Question
Product Cost Method of Product Pricing
La Femme Accessories Inc. produces women's handbags. The cost of producing 1,100 handbags is as follows:
Direct materials | $14,600 |
Direct labor | 7,400 |
Factory overhead | 6,400 |
Total manufacturing cost | $28,400 |
The selling and administrative expenses are $28,700. The management desires a profit equal to 14% of invested assets of $498,000.
If required, round your answers to nearest whole number.
a. Determine the amount of desired profit from the production and sale of 1,100 handbags.
$
b. Determine the product cost per unit for the production of 1,100 handbags.
$per unit
c. Determine the product cost markup percentage for handbags.
%
d. Determine the selling price of handbags. Round your answers to nearest whole value.
Cost | $per unit |
Markup | $per unit |
Selling price | $per unit |
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