The Jetson Company had 14,000 units in beginning inventory. During 2008 the company manufactured 90,000 units and sold 97,000 units. The company experienced the following costs (assume the same unit costs in all years): Direct materials: $11.00/unit Direct labor: $2.25/unit Other variable costs Manufacturing overhead: $3.80/unit Selling: $1.75/unit Other fixed costs Manufacturing overhead: $180,000 Selling: $25,000 Administrative: $20,000 If the company uses variable costing, the ending inventory for the year would be valued at

The Jetson Company had 14,000 units in beginning inventory. During 2008 the company manufactured 90,000 units and sold 97,000 units. The company experienced the following costs (assume the same unit costs in all years): Direct materials: $11.00/unit Direct labor: $2.25/unit Other variable costs Manufacturing overhead: $3.80/unit Selling: $1.75/unit Other fixed costs Manufacturing overhead: $180,000 Selling: $25,000 Administrative: $20,000 If the company uses variable costing, the ending inventory for the year would be valued at

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual variable unit cost is as follows: Fixed overhead was 320,000. Fixed selling expenses consisted of advertising copayments totaling 110,000. Fixed administrative expenses were 236,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was 148,000 for 4,000 juicers. The value of ending inventory reported on the financial statements was a. 55,500 b. 92,500 c. 66,500 d. 39,900
Wyandotte Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 256,900, direct labor cost was 176,000, and overhead cost was 308,400. There were 40,000 units produced. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 6.62 is direct materials and 7.71 is overhead. What is the prime cost per unit? Conversion cost per unit?
Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual variable unit cost is as follows: Fixed overhead was 320,000. Fixed selling expenses consisted of advertising copayments totaling 110,000. Fixed administrative expenses were 236,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was 148,000 for 4,000 juicers. The value of ending inventory reported on the financial statements was Refer to the information in 2.24. The gross margin percentage for last year was a. 12.57% b. 55.67% c. 28.95% d. 38.33%
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