CH18hw - 18-3a Part 1 Costs Plastic for casting- $17,000...

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Unformatted text preview: 18-3a Part 1 Costs Plastic for casting- $17,000 Wages for workers-82,000 Property Taxes on factory-$5,000 Accoutning staff salaries-35,000 Drum Stands-26,000 Rent cost of equipment for staff Upper Management salaries-125,000 Annual flat fee paid for maintenance-10,000 Salaries Commissions-$15 per unit Machinery depreciation-40,000 Part 2 Calculation of manugacturing cost per drum Item variable production costs Plastic for casting Wages of assembly workers Drum Stands Total Variable costs Fixed production costs Property taxes on factory Annual fee for maintenance service Machinery depreciation Total fixed costs Total Manufacturing cost Part 3 If 1,200 more drums were made, the casting price would increase to 20,400 because it is still at $17 per drum set. Part 4 Property taxes should remain the same because it is a fixed cost and it should not fluctuate. 18-6a part 1 Units Beginning inventory, December 31,2007 (1,200*8) Purchases during 2008 (35,000*$8) Inventory available for production Ending inventory, december 31, 2008 (1200+35000-33200*8) Inventory transferred into production Variable 17,000 82,000 Fixed 5,000 35,000 26,000 10,000 125,000 10,000 $15*units 40,000 Product 17,000 82,000 5,000 26,000 Period 35,000 10,000 125,000 10,000 $15*units 40,000 Drum Beat Calculation of manugacturing cost per drum December 31, 2008 Total Cost 17,000 82,000 26,000 125,000 5,000 10,000 40,000 55,000 180,000 Per Unit cost 17 82 26 125 5 10 40 55 180 se to 20,400 because it is still at $17 per drum set. st and it should not fluctuate. Amount 9,600 280,000 289,600 24,000 265,600 ...
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This note was uploaded on 03/05/2010 for the course BMGT 364 taught by Professor -- during the Spring '10 term at UMBC.

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CH18hw - 18-3a Part 1 Costs Plastic for casting- $17,000...

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