Question
In: Accounting
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 assets of $733,875.
a. Determine the amount of desired profit from
the production and sale of 5,000 units.
$ 146,775
b. Determine the total costs for the production of 5,000 units.
| Variable | $ 1,150,000 |
| Fixed (Need help) | |
| Total | $ (Need help) |
Determine the cost amount per unit for the production and sale
of 5,000 units.
$ per unit
c. Determine the total cost markup percentage
per unit. (rounded to one decimal place).
%
d. Determine the selling price per unit. Round
to the nearest cent.
$ per unit
Solutions
Expert Solution
- All working forms part of the answer
- Requirement ‘a’
|
A |
Invested Assets |
$ 7,33,875.00 |
|
B |
Desired Profit/return % |
20% |
|
C=A x B |
Desired Profit/return |
$ 1,46,775.00 |
- Requirement ‘b’
|
A |
Variable cost per unit |
$ 230.00 |
|
B |
Total Units |
5000 |
|
C = A x B |
Total variable cost |
$ 11,50,000.00 |
|
D |
Total Fixed cost [205000 + 70000] |
$ 2,75,000.00 |
|
E = C + D |
Total Cost |
$ 14,25,000.00 |
|
F = E/B |
Total cost per unit |
$ 285.00 |
- Requirement ‘c’
|
A |
Desired Profit/return |
$ 1,46,775.00 |
|
B |
Total Unit |
5000 |
|
C=A/B |
Profit per unit |
$ 29.36 |
|
D |
Total cost per unit |
$ 285.00 |
|
E=C/D |
Total cost markup % per unit |
10.3% |
- Requirement ‘d’
|
A |
Total cost per unit |
$ 285.00 |
|
B |
Total cost markup % per unit |
10.3% |
|
C=A x B |
Markup (profit) |
$ 29.36 |
|
D = A + C |
Selling Price per unit |
$ 314.36 |
ekkarill92 answered 2 years agoRelated Solutions
Willis Products Inc. uses the total cost concept of applying the cost-plus approach to product pricing....
Willis Products Inc. uses the total cost concept of applying the
cost-plus approach to product pricing. The costs of producing and
selling 4,000 units of medical tablets are as follows:
Variable costs per unit:
Fixed costs:
Direct materials
$99
Factory overhead
$136,000
Direct labor
36
Selling and admin. exp.
44,000
Factory overhead
30
Selling and admin. exp.
25
Total
$190
Willis Products desires a profit equal to a 20% rate of return
on invested assets of $319,600.
a. Determine the...
Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing....
Willis Products Inc. uses the product cost concept of applying
the cost-plus approach to product pricing. The costs of producing
and selling 2,000 units of medical tablets are as follows:
Variable costs per unit:
Fixed costs:
Direct materials
$83
Factory overhead
$58,000
Direct labor
30
Selling and admin. exp.
20,000
Factory overhead
26
Selling and admin. exp.
21
Total
$160
Willis Products desires a profit equal to a 25% rate of return
on invested assets of $116,560.
a. Determine the...
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...
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...
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...
Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing....
Smart Stream Inc. uses the total cost method of applying the
cost-plus approach to product pricing. The costs of producing and
selling 7,500 units of cell phones are as follows:
Variable costs:
Fixed costs:
Direct materials
$ 85
per unit
Factory overhead
$321,900
Direct labor
39
Selling and administrative
expenses
113,100
Factory overhead
26
Selling and administrative
expenses
20
Total
variable cost per unit
$170
per unit
Smart Stream desires a profit equal to a 14% return on invested
assets...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- What 2 things happen to the melting point of a solid when an impurity is present?
- How Can Hominin Evolution be characterized as " mosaic evolution" Use examples of species from the...
- Absorption and Variable Costing Income Statements for Two Months and Analysis During the first month of...
- Mobile and wireless devices are being increasingly used in the Business Administration and Management Industry. write...
- What are the options that might be considered in relation to introducing flexible work practices? What...
- Question 2 : Aggregate Scores: Write a program that opens 2 files, quiz.txt, and hw.txt. The...
- Define the term symbiosis specifically as it applies in a biological context. Compare and contrast parasitism,...
ADVERTISEMENT