acc207_student_workbook_RobertaArnold

acc207_student_workbook_RobertaArnold - Milestone One Part...

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Milestone One, Part I Product Costs Materials - Cedar Materials - Plastic Factory Worker Labor Materials Indirect Factory Depreciation Factory Utilities Ffactory Maintenance and Repairs Period Costs Shipping - $2.25 each Sales Commissions - $2.00 per unit sold Office Rent Advertising Liability Insurance Office Depreciation Office Salaries Explanation: Product costs would refer to the costs which are used to create a product. These costs would include materials, labor and other costs that could be connected to the production of the product. Period Costs are not a necessary part of the manufacturing process. Therefore, period costs are not assigned to the products or to the cost of inventory. Period costs are most often connected with selling or with administration.
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Milestone One, Part II Use Table I on the MDE Manufacturing Budget to complete your calculations. 50,000 Totals 47,000 Units Budget Units Sales Price per Unit $ 21.00 21.10 Variable Costs Materials - Cedar 4.50 225,000 5.28 Materials - Plastic 0.75 37,500 0.80 Factory Worker Labor 300,000 Materials - Indirect 3,000 Shipping ($2.25/ea) 112,500 Sales Commissions ($2/unit sold) 100,000 778,000 Variable Cost per Unit 15.56
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