Question
In: Accounting
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 14% rate of return on invested assets of $599,500.
a. Determine the amount of desired profit from
the production and sale of 4,700 units of cell phones.
$
b. Determine the product cost per unit for the
production of 4,700 of cell phones. If required, round your answer
to nearest dollar.
$ per unit
c. Determine the product cost markup percentage
(rounded to two decimal places) for cell phones.
%
d. Determine the selling price of cell phones. Round to the nearest dollar.
| Cost | $per unit |
| Markup | $per unit |
| Selling price | $per unit |
Solutions
Expert Solution
a.Determine the amount of desired profit from the production and sale of 4,700 units of cell phones.
Answer: Desired Profit = Investment x Expected rate of return
=$599,500 x 14%=$83,930
b.Determine the product cost per unit for the production of
4,700 of cell phones. If required, round your answer to nearest
dollar.
$ per unit
Answer:
|
Particulars |
Amount |
|
|
Direct materials |
$ 74.0 |
|
|
Direct labor |
$ 31.0 |
|
|
Factory overhead |
$ 25.0 |
|
|
Selling and admin. exp. |
$ 21.0 |
|
|
Factory overhead |
$200,400/4,700 |
$ 42.6 |
|
Selling and admin. exp. |
$69,000/4,700 |
$ 14.68 |
|
Product Cost |
$ 208.3 |
c.Determine the product cost markup percentage (rounded to two decimal places) for cell phones.
Profit per Unit =$83,930/4,700 units=$17.86
Mark up percentage =$17.86/$208.33 x 100=8.57%
d. Determine the selling price of cell phones. Round to the nearest dollar.
|
Cost |
$ 208.33 |
Per Unit |
|
Markup |
$ 17.86 |
Per Unit |
|
Selling price |
$ 226.19 |
Per Unit |
ekkarill92 answered 2 years agoRelated Solutions
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 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...
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...
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...
Total Cost Concept of Product Costing Willis Products Inc. uses the total cost concept of applying...
Total Cost Concept of Product Costing
Willis Products Inc. uses the total cost concept of applying the
cost-plus approach to product pricing. The costs of producing and
selling 5,000 units of medical tablets are as follows:
Variable costs per unit:
Fixed costs:
Direct materials
$120
Factory overhead
$205,000
Direct labor
44
Selling and admin. exp.
70,000
Factory overhead
37
Selling and admin. exp.
29
Total
$230
Willis Products desires a profit equal to a 20% rate of return
on invested...
RooPhone Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The...
RooPhone Inc. uses the product cost concept of
applying the cost-plus approach to product pricing. The costs of
producing and selling 5,000 units of cellular phones are as
follows: (7 points)
Variable
costs Fixed
Costs:
Direct materials
$625,000 Factory
overhead $215,000
Direct
labor 225,000 Selling
& Admin.
expenses
75,000
Factory
Overhead
200,000
Selling & admin. Exp. 150,000
$1,200,000
RooPhone desires a profit equal to a 18% rate of return on
invested assets of $550,000.
Required:
a.) Determine the amount of desired profit.
b.) Determine...
RooPhone Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The...
RooPhone Inc. uses the product cost concept of applying the
cost-plus approach to product pricing. The costs of producing and
selling 5,000 units of cellular phones are as follows: (7 points)
Variable costs Fixed Costs: Direct materials $625,000 Factory
overhead $215,000 Direct labor 225,000 Selling & Admin.
expenses 75,000 Factory Overhead 200,000 Selling & admin. Exp.
150,000 $1,200,000 RooPhone desires a profit equal to a 18% rate of
return on invested assets of $550,000. Required: a.) Determine the
amount of...
Bluebird Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The...
Bluebird Inc. uses the product cost concept of applying the
cost-plus approach to product pricing. The costs and expenses of
producing 25,000 units of Product K are as follows:
Variable costs: $2.50
Direct Materials 4.25
Direct Labor 1.25
Factory Overhead 0.50
Total: 8.50
Fixed Costs $25,000
Selling and Administrative expenses 17,000
Bluebird desires a profit equal to a 5% rate of return on
invested assets of $642,500
a) determine the amount of desired profit from the production
and sale of...
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...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- For Questions 1-3: consider the following code: public class A { private int number; protected String...
- You are tasked with assessing the health department’s intervention program in preventing recurrence of acute alcohol...
- Compare the MOSFET, JFET , and BJT and identify the reasons these devices behave differently. What...
- How would you use SAS Enterprise Miner to create a neural network model of your example?
- Explain the use of neural networking modeling in predictive analytics.
- Current Market Mix of Netflix, as detail as possible, please.
- This is all one question, thank you so much in advance! You must evaluate a proposal...
ADVERTISEMENT