Question
In: Accounting
7. Product Cost Method of Product Costing Voice Com, Inc. uses the product cost method of...
7. Product Cost Method of Product Costing
Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 4,620 cell phones are as follows:
| The Variable costs per unit are: | The Fixed costs are: | |||||||
| Direct materials | $61 | Factory overhead | $199,000 | |||||
| Direct labor | 30 | Selling and administrative expenses | 69,900 | |||||
| Factory overhead | 22 | |||||||
| Selling and administrative expenses | 22 | |||||||
| Total variable cost per unit | $135 | |||||||
Voice Com desires a profit equal to a 15% rate of return on invested assets of $598,200.
a. Determine the amount of desired profit from
the production and sale of 4,620 cell phones.
$
b. Determine the product cost per unit for the
production of 4,620 of cell phones. Round your answer to the
nearest whole dollar.
$ per unit
c. Determine the product cost markup percentage
for cell phones. Round your answer to two decimal places.
%
d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar.
| Total Cost | $per unit |
| Markup | per unit |
| Selling price | $per unit |
Solutions
ekkarill92 answered 3 years agoRelated Solutions
Product Cost Method of Product Costing Voice Com, Inc. uses the product cost method of applying...
Product Cost Method of Product Costing
Voice Com, Inc. uses the product cost method of applying the
cost-plus approach to product pricing. The costs of producing and
selling 5,320 cell phones are as follows:
Variable costs per unit:
Fixed costs:
Direct materials
$76
Factory overhead
$199,000
Direct labor
30
Selling and administrative expenses
69,100
Factory overhead
22
Selling and administrative expenses
18
Total variable cost per unit
$146
Voice Com desires a profit equal to a 15% rate of return...
Product Cost Method of Product Costing Voice Com, Inc., uses the product cost concept of applying...
Product Cost Method of Product Costing
Voice Com, Inc., uses the product cost concept of applying the
cost-plus approach to product pricing. The costs of producing and
selling 4,700 units of cell phones are as follows:
Variable costs:
Fixed costs:
Direct materials
$74
per unit
Factory overhead
$200,400
Direct labor
31
Selling and admin. exp.
69,000
Factory overhead
25
Selling and admin. exp.
21
Total variable cost per unit
$151
per unit
Voice Com desires a profit equal to a...
Product Cost Method of Product Costing Voice Com, Inc., uses the product cost concept of applying...
Product Cost Method of Product Costing
Voice Com, Inc., uses the product cost concept of applying the
cost-plus approach to product pricing. The costs of producing and
selling 4,700 units of cell phones are as follows:
Variable costs:
Fixed costs:
Direct materials
$74
per unit
Factory overhead
$200,400
Direct labor
31
Selling and admin. exp.
69,000
Factory overhead
25
Selling and admin. exp.
21
Total variable cost per unit
$151
per unit
Voice Com desires a profit equal to a...
Product Cost Method of Product Costing Voice Com, Inc., uses the product cost concept of applying...
Product Cost Method of Product Costing
Voice Com, Inc., uses the product cost concept of applying the
cost-plus approach to product pricing. The costs of producing and
selling 4,700 units of cell phones are as follows:
Variable costs:
Fixed costs:
Direct materials
$74
per unit
Factory overhead
$200,400
Direct labor
31
Selling and admin. exp.
69,000
Factory overhead
25
Selling and admin. exp.
21
Total variable cost per unit
$151
per unit
Voice Com desires a profit equal to a...
Voice Com, Inc., uses the product cost method of applying the cost-plus approach to product pricing....
Voice Com, Inc., uses the product cost method of applying the
cost-plus approach to product pricing. The costs of producing and
selling 5,010 units of cell phones are as follows:
Variable costs:
Fixed costs:
Direct materials
$62
per unit
Factory overhead
$200,200
Direct labor
38
Selling and admin. exp.
69,900
Factory overhead
26
Selling and admin. exp.
20
Total variable cost per unit
$146
per unit
Voice Com desires a profit equal to a 16% rate of return on
invested...
MyPhone, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The...
MyPhone, Inc. uses the product cost method of applying the
cost-plus approach to product pricing. The costs of producing and
selling 5,380 cell phones are as follows:
Variable costs per unit:
Fixed costs:
Direct materials
$64
Factory overhead
$198,000
Direct labor
31
Selling and administrative expenses
71,300
Factory overhead
23
Selling and administrative expenses
21
Total variable cost per unit
$139
MyPhone desires a profit equal to a 16% rate of return on
invested assets of $600,700.
a. Determine the...
MyPhone, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The...
MyPhone, Inc. uses the product cost method of applying the
cost-plus approach to product pricing. The costs of producing and
selling 5,380 cell phones are as follows:
Variable costs per unit:
Fixed costs:
Direct materials
$64
Factory overhead
$198,000
Direct labor
31
Selling and administrative expenses
71,300
Factory overhead
23
Selling and administrative expenses
21
Total variable cost per unit
$139
MyPhone desires a profit equal to a 16% rate of return on
invested assets of $600,700.
a. Determine the...
Pureform, Inc., uses the FIFO method in its process costing system. It manufactures a product that...
Pureform, Inc., uses the FIFO method in its process costing
system. It manufactures a product that passes through two
departments. Data for a recent month for the first department
follow:
Units
Materials
Labor
Overhead
Work in process inventory, beginning
68,000
$
68,700
$
22,800
$
32,900
Units started in process
649,000
Units transferred out
670,000
Work in process inventory, ending
47,000
Cost added during the month
$
804,750
$
239,590
$
409,825
The beginning work in process inventory was 80%...
Pureform, Inc., uses the FIFO method in its process costing system. It manufactures a product that...
Pureform, Inc., uses the FIFO method in its process costing
system. It manufactures a product that passes through two
departments. Data for a recent month for the first department
follow:
Units
Materials
Labor
Overhead
Work in process inventory, beginning
79,000
$
75,100
$
36,400
$
49,100
Units started in process
751,000
Units transferred out
800,000
Work in process inventory, ending
30,000
Cost added during the month
$
1,557,385
$
612,440
$
688,995
The beginning work in process inventory was 70%...
Pureform, Inc., uses the FIFO method in its process costing system. It manufactures a product that...
Pureform, Inc., uses the FIFO method in its process costing
system. It manufactures a product that passes through two
departments. Data for a recent month for the first department
follow:
Units
Materials
Labor
Overhead
Work in process inventory, beginning
5,000
$
4,320
$
1,040
$
1,790
Units started in process
45,000
Units transferred out
42,000
Work in process inventory, ending
8,000
Cost added during the month
$
52,800
$
21,500
$
32,250
The beginning work in process inventory was 80%...
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