Answers to Practice Problems chap014 (2)

# Answers to Practice Problems chap014 (2) - Chapter 14 Cost...

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Chapter 14 Cost Analysis for Planning E14.8. a. Costs for a "batch" of 15 quarts: Triphate solution (18 quarts @ \$0.45 per quart) ……………………… \$ 8.10 Sobase granules (8 pounds @ \$0.90 per pound) ……………………… 7.20 Methage (4 ounces @ \$1.40 per ounce) ……………………………… 5.60 Bottles (15 @ \$0.25 each)……………………………………………… 3.75 Total cost for 15 quarts………………………………………………… \$24.65 Cost per quart (\$24.65 / 15 quarts). .…………………………………… \$1.643 b. Other factors to be considered: 1. Possible cost increases during coming year. 2. Spillage / spoilage / waste in the manufacturing process. c. Expected labor costs (labor rate x estimated hours) for the most likely (or economical) production quantity would be determined, and then expressed on a per unit basis. P14.18. a. October November December Total Expected sales in units ……… 12,000 14,000 20,000 46,000 Selling price per unit………… \$25 \$25 \$25 \$25 Total sales …………………… \$300,000 \$350,000 \$500,000 \$1,150,000 b. Cash collections from: October November December Total September sales……………… \$221,000 a \$ 221,000

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Answers to Practice Problems chap014 (2) - Chapter 14 Cost...

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