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# Word problem - Ex 111 Carson Company manufactures a single...

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Ex. 111 Carson Company manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for the production of 2,000 units. The Utilities and Maintenance are mixed costs. The fixed portions of these costs are \$200 and \$300, respectively. Costs Incurred Production in Units 2,000 3,000 Production Costs a. Direct Materials \$ 4,000 ? b. Direct Labor 16,000 ? c. Utilities 1,200 ? d. Rent 3,000 ? e. Indirect Labor 4,600 ? f. Supervisory Salaries 1,500 ? g. Maintenance 900 ? h. Depreciation 2,500 ? Instructions Calculate the expected costs to be incurred when production is 3,000 units. Use your knowledge of cost behavior to determine which of the other costs are fixed or variable.

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Yang Company has budgeted the following unit sales: 2002 Units January 10,000 February 8,000 March 9,000 April 11,000 May 15,000 The finished goods units on hand on December 31, 2001, was 2,000 units. Each unit requires 3 pounds of raw materials which is estimated to cost an average of \$4 per pound. It is the company's policy to maintain a finished goods inventory at the end of each month equal to 20% of next month's anticipated sales. They also have a policy of maintaining a raw materials inventory at the end of each month equal to 30% of the pounds needed for the following month's production. There were 8,640 pounds of raw materials on hand at December 31, 2001. Instructions
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Word problem - Ex 111 Carson Company manufactures a single...

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