Camile Company has no beginning and ending inventories, and reports the following data about its only product: Direct materials used $100,000 Direct labor $80,000 Fixed indirect manufacturing $50,000 Fixed selling and administrative $220,000 Variable indirect manufacturing $20,000 Variable selling and administrative $75,000 Selling price(per unit) $84 Units produced and sold 10,000 Camile Company uses the absorption approach to prepare the income statement. What is the product cost per unit? A) $20 B) $25 C) $27.50 D) $32.50

Camile Company has no beginning and ending inventories, and reports the following data about its only product: Direct materials used $100,000 Direct labor $80,000 Fixed indirect manufacturing $50,000 Fixed selling and administrative $220,000 Variable indirect manufacturing $20,000 Variable selling and administrative $75,000 Selling price(per unit) $84 Units produced and sold 10,000 Camile Company uses the absorption approach to prepare the income statement. What is the product cost per unit? A) $20 B) $25 C) $27.50 D) $32.50

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 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

See similar textbooks

Similar questions

Circetrax, Inc. has provided the following financial information for the year: Finished Goods Inventory: Beginning balance, in units Units produced Units sold Ending balance, in units Production costs: Variable manufacturing costs per unit Total fixed manufacturing costs What is the unit product cost for the year using absorption costing? OA. $117 630 1,400 1,500 530 $50 $42,000 W
All applicable Cases are available with McGraw-Hill’s Connect™Accounting. Cost of goods manufactured, cost of goods sold, and income statement Determine each of the following missing amounts:Firm A Firm B Firm CBeginning raw materials inventory . . . . . . . . . . . . . . . . . $ 17,000 $ ? $ 42,000Purchases of raw materials during the year . . . . . . . . . . ? 96,000 226,000Raw materials available for use . . . . . . . . . . . . . . . . . . . ? 119,000 ?Ending raw materials inventory . . . . . . . . . . . . . . . . . . . 12,000 ? 51,000Cost of raw materials used . . . . . . . . . . . . . . . . . . . . . . 90,000 101,000 ?Direct labor costs incurred. . . . . . . . . . . . . . . . . . . . . . . 130,000 ? 318,000Variable manufacturing overhead applied. . . . . . . . . . . . ? 34,000 72,000Fixed manufacturing overhead applied. . . . . . . . . . . . . . 100,000 60,000 ?Total manufacturing costs incurred . . . . . . . . . . . . . . . . 370,000 ? ?Beginning work in process. . . . . . . . .…
Jax Incorporated reports the following data for its only product. The company had no beginning finished goods inventory and it uses absorption costing. Sales price$ 58.00per unitDirect materials$ 11.00per unitDirect labor$ 8.50per unitVariable overhead$ 13.00per unitFixed overhead$ 1,440,000per year 1. Compute gross profit assuming (a) 80,000 units are produced and 80,000 units are sold and (b) 120,000 units are produced and 80,000 units are sold. 2. By how much would the company’s gross profit increase or decrease from producing 40,000 more units than it sells?
The following information relates to Marshall Manufacturing's current accounting period: Raw materials used $ 16,400 Direct labor wages 32,400 Sales salaries and commissions 24,400 2,940 Depreciation on production equipment Rent on manufacturing facilities 3,940 Administrative supplies and utilities 4,400 Sales revenue 99,000 Units produced 3,400 Units sold 3,400 Based on this information, what is the company's net income? (Do not round intermediate calculations.) Multiple Choice $14,520 $32,120 $17,460 $14,940
Jax Incorporated reports the following data for its only product. The company had no beginning finished goods inventory and it uses absorption costing. Sales price $ 57.50 per unit Direct materials $ 10.50 per unit Direct labor $ 8.00 per unit Variable overhead $ 12.50 per unit Fixed overhead $ 1,237,500 per year 1. Compute gross profit assuming (a) 75,000 units are produced and 75,000 units are sold and (b) 110,000 units are produced and 75,000 units are sold.2. By how much would the company’s gross profit increase or decrease from producing 35,000 more units than it sells?
Sierra Company incurs the following costs to produce and sell a single product. （picture1） During the last year, 25,000 units were produced and 22,000 units were sold. The Finished Goodsinventory account at the end of the year shows a balance of $72,000 for the 3,000 unsold units.Required:1. Is the company using absorption costing or variable costing to cost units in the Finished Goods inventory account? Show computations to support your answer.2. Assume that the company wishes to prepare financial statements for the year to issue to its stockholders.a. Is the $72,000 figure for Finished Goods inventory the correct amount to use on these statements for external reporting purposes? Explain.b. At what dollar amount should the 3,000 units be carried in the inventory for externalreporting purposes?
Use the information given below to prepare the Income Statement of Costa Enterprises for the year ended 31 December 2022 using the absorption costing method. Costa Enterprises commenced operations on 02 January 2022, and produces a single product that sells for R72 per unit. During 2022, 300 000 units of the product were manufactured of which 240 000 units were sold. There was no work-in-process inventory at the end of the year. Manufacturing costs and marketing and administrative costs for 2022 were as follows: Please avoid solutions in an image format thanku
Delilah Incorporated provided the following information regarding its only product: Sale price per unit $50.00Direct materials used $160,000Direct labor incurred $185,000Variable manufacturing overhead $120,000Variable selling and administrative expenses $70,000Fixed manufacturing overhead $65,000Fixed selling and administrative expenses $12,000Units produced and sold 20,000 unitsAssume no beginning inventory Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 5,000 units at a sale price of $40 per unit? (NOTE: Assume regular sales are not affected by the special order and all orders incur variable selling and administrative expenses) Select one: a. Increase by $123,250 b. Increase by $78,750 c.…
Circetrax, Inc. has provided the following financial information for the year: Finished Goods Inventory: Beginning balance, in units 600 Units produced 2,800 Units sold 2,900 Ending balance, in units 500 Production costs: Variable manufacturing costs per unit $60 Total fixed manufacturing costs $42,000 What is the unit product cost for the year using absorption costing? A. $84 B. $75 C. $130 D. $74
The following information pertains to ABC Corporation: Beginning raw materials inventory Ending raw materials inventory Beginning work-in-process inventory Ending work-in-process inventory Beginning finished goods inventory Ending finished goods inventory Cost of goods manufactured Sales $37,000 $45,000 $18,000 $25,000 $36,000 $30,000 $241,000 $299,000 What is the gross profit earned by the ABC Corporation? Instructions: Input your answer without using a dollar Țign, comma or cents. For example, if your answer is 10000, input your answer as 10000 (and NOT $10000, or $10,000 or 10,000.00 or $10,000.00)
a. Calculate the cost of goods manufactured for the year by Gopaul Electronics b.) Prepare an income statement for Gopaul Electronics for the year ended December 31, 2023, clearly showing the calculation of Cost of Goods Sold. List the non-production overheads in order of size starting with the largest. c) What is the selling price per switch if Gopaul Electronics manufactured 1,500 switches for the period under review and uses a mark-up of 33⅓% on cost?
Jax Incorporated reports the following data for its only product. The company had no beginning finished goods inventory and it uses absorption costing. Sales price Direct materials Direct labor Variable overhead Fixed overhead $ 56.60 per unit $ 9.60 per unit $ 7.10 per unit $ 11.60 per unit $ 910,800 per year 1. Compute gross profit assuming (a) 66,000 units are produced and 66,000 units are sold and (b) 92,000 units are produced and 66,000 units are sold. 2. By how much would the company's gross profit increase or decrease from producing 26,000 more units than it sells? Complete this question by entering your answers in the tabs below. es Required 1 Required 2 Compute gross profit assuming (a) 66,000 units are produced and 66,000 units are sold and (b) 92,000 units are produced and 66,000 units are sold. (a) 66,000 Units Produced and 66,000 (b) 92,000 Units Produced and 66,000 Units Sold Units Sold Sales $ 3,735,600 $ 5,207,200 Cost of goods sold 2,838,000 3,514,400 Gross profit $…