Compute the unit product cost

Assignment Help Managerial Accounting
Reference no: EM132911638

Question - Bright company manufactures and sells a single product. During the company's first year of operations the below costs were recorded:

Variable costs per unit:

Manufacturing:

Direct Materials $ 25

Direct Labour 12

Variable manufacturing overhead 3

Variable selling and administrative 5

Fixed costs per year:

Fixed manufacturing overhead $ 200,000

Fixed selling and administrative expense $ 110,000

During the year, the company produced 25,000 units and sold 21,000 units. The selling price of each unit was $65.

Required -

a. Compute the unit product cost assuming the company was using the absorption costing method.

b. Compute the unit product cost assuming the company was using the variable costing method and also prepare the income statement for the year based on the variable costing method.

Reference no: EM132911638

Questions Cloud

Indicate the amounts and direction of effects on the element : Indicate the amounts and direction of effects on the elements of the statement of financial position and the statement of earnings.
Compute the cost of the ending inventory under FIFO method : Assuming there are 200 units on hand at the end of the period, compute the cost of the ending inventory under (a) the FIFO method
Prepare adjusting entries for penny pool service and supply : Prepare adjusting entries for Penny's Pool Service & Supply Inc. on December 31, 2020. Penny's Pool Service & Supply Inc. (PPSS) is completing the accounting
Discussion of the current and historical challenges : Discussion of the current and historical challenges faced by public health in preventing and reducing the impact of epidemics.
Compute the unit product cost : Compute the unit product cost assuming the company was using the variable costing method and also prepare the income statement for the year
Prepare a cash disbursements budget in a proper format : Actual purchases in November were $100,000 and actual purchases in December were $300,000. Prepare a cash disbursements budget in a proper format
Employee motivation impact organizational behavior : How does employee motivation impact organizational behavior? Provide details. What do you believe has the biggest impact on employee motivation? Why?
Prepare entries to reflect transactions of accrual method : Under an assurance-type warranty, prepare the entries to reflect the above transactions (accrual method) for 2014 and 2015.
What is the amortized cost of the receivable on december : What is the amortized cost of the receivable on December 31, 2021? How much interest income shall be taken up by Ironbank during 2020?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Find what are the flexible budget for units

What are the flexible budget for 14,000 and 20,000 units, respectively? Yama Industries currently produces cardboard boxes in an automated process.

  What procedures are necessary to issue the bonds

Discuss the advantages of bonds over common stock financing, indicate the types of bonds he might issue and what procedures are necessary to issue the bonds.

  Which company will have a higher operating leverage

Azure Ltd assemblies its products manually. How will these two companies' cost structures differ? Which company will have a higher operating leverage= factor?

  What is the budgeted income statement for rod co

What is the budgeted income statement for Rod Co. Sales discounts are given to various customers at different rates and net to gross ratio is at 93%

  How much loss was suffered by using variable costing method

What costing method should be used by the company for preparing income statement for stock holders? How much loss was suffered by using variable costing method

  Define bcg matix

1-Define BCG Matix ? And Why should See It ?? 2- Name the axis of matrix , how would obtain them ?? And write up an example with numbers ??

  What will able awareness level be next year

Assuming that Able loses one-third of its awareness each year, what will Able's awareness level be next year? Brand managers know that increasing promotional

  Compute total equivalent units for conversion under the fifo

Compute the cost of goods completed and transferred out under the weighted-average method. Compute total equivalent units for conversion under the FIFO method.

  How identify the type of auditor report to be issued

You are the audit manager at Deloitte and you are finalising the audits for 30 June 2021. Identify the type of auditor's report to be issued

  How many equivalent units would be used to allocate

3,500 units in beginning work in process inventory, how many equivalent units would be used to allocate conversion costs to work in process ending inventory?

  Determine what total manufacturing costs were

Balances in selected accounts of the CAROL COMPANY, What Total manufacturing costs were? What Cost of goods manufactured was?

  Determine the expected cash collections during May

Cash payments for operating expenses in May will be $119,500; Parson's cash balance on May 1 was $127,800. Determine the expected cash collections during May

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd