Solutions to problems in Chapter 17

Solutions to problems in Chapter 17 - DATA INPUT Planned...

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Planned Production (units) 10,000 Actual Production (units) 10,000 Sales (unit) 9,600 Sales Price (per unit) $72 Cost Data Direct Material (per unit) $12 Conversion Cost: Direct Labor $45,000 Variable Manufacturing Overhead $65,000 Fixed Manufacturing Overhead $220,000 Selling and Administrative Costs Variable (per unit) $8 Fixed $118,000 SOLUTION 1. Direct Material 10000 units x $12 $120,000 Direct Labor $45,000 Variable Manufacturing Overhead $65,000 Fixed Manufacturing Overhead $220,000 9600 units x $8 $76,800 $118,000 Total $644,800 2. The cost of the year-end inventory of 400 (10000 units produced - 9600 units sold) is computed as follows Absorption Costing Variable Costing Throughput Costing Direct Material $120,000 $120,000 $120,000 Direct Labor $45,000 $45,000 Variable Manufacturing Overhead $65,000 $65,000 Fixed Manufacturing Overhead $220,000 Total product cost $450,000 $230,000 $120,000
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Solutions to problems in Chapter 17 - DATA INPUT Planned...

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