hw_solution_2

hw_solution_2 - 2-21a.Variable production cost per...

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Unformatted text preview: 2-21a.Variable production cost per unit ($120 + $20 + $5 + $10)......................$155b.Variable cost per unit. ($155 + $15)..........................................................$170c.Full cost per unit. [$170 + ($50,000 ÷ 500 units)].....................................$270d.Full absorption cost per unit. [$155 + ($30,000 ÷ 500)]............................$215e.Prime cost per unit: (labor + materials + outsource).................................$145f.Conversion cost per unit. (labor + overhead + outsource)........................$210g.Contribution margin per unit. ($300 – $170)...........................................$130h.Gross margin per unit. ($300 – full absorption cost of $215)...................$85i.Suppose the number of units decreases to 400 units per month, which is within the relevant range. Which parts of (a) through (h) will change. For each amount that will change, give the new amount for a volume of 400 units.Full cost = $170 + ($50,000 ÷ 400) = $295Full absorption cost = $155 + ($30,000 ÷ 400) = $230Conversion costs = $120 + $10 + ($30,000 ÷ 400) + $20 = $225Gross margin = $300 – $230 = $70c, d, f and h will change2-28:Secol Machining CompanyCost of Goods Sold StatementFor the Year Ended December 31Beginning work in process inventory..................$ 58,000Manufacturing costs:Direct materials:Beginning inventory.....................................$ 48,000Purchases....................................................310,000Materials available...................................358,000Less ending inventory..................................59,000Direct materials used...............................$299,000 (a)*Other manufacturing costs..........................785,200**Total manufacturing costs........................1,084,200 (c)Total costs of work in process.....................$ 1,142,200Less ending work in process....................56,000Cost of goods manufactured................$ 1,086,200 (b)Beginning finished goods inventory....................43,800Finished goods available for sale.......................$ 1,130,000Ending finished goods inventory.........................45,000Cost of goods sold..............................................Cost of goods sold....
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This note was uploaded on 10/29/2009 for the course ACC 066 taught by Professor Kwak during the Spring '08 term at DeAnza College.

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hw_solution_2 - 2-21a.Variable production cost per...

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