Question

Please show steps for the following questions:

1) The East Company manufactures several different products. Unit costs associated with Product ORD105 are as​ follows:

Direct materials                                          $54	$ 54$54
Direct manufacturing labor                           8	88
Variable manufacturing overhead               11	1111
Fixed manufacturing overhead                    25	2525
Sales commissions​ (2% of​ sales)                5	55
Administrative salaries                                12	1212
Total                                                           115	$ 115$115

What is the percentage of the total fixed costs per unit associated with Product ORD105 with respect to total​ cost?

a. 32%

b. 26%

c. 37%

d. 15%

2) Pederson Company reported the​ following:

Manufacturing costs                  $315,000	$ 315 comma 000$315,000
Units manufactured                     7,000	7 comma 0007,000
Units sold                                    6,300    units sold for $115 per unit	6 comma 3006,300		units sold for $ 115$115 per unit
Beginning inventory                    1,750 units	1 comma 7501,750		units

What is the manufacturing cost for the ending finished goods​ inventory?

a. $31,500

b. $25,200

c. $577,500

d. $110,250

3)The following information pertains to Expert System​ Corporation:

Beginning work−in−process inventory      $15,000	$ 15 comma 000$15,000
Ending work−in−process inventory           24,000	24 comma 00024,000
Beginning finished goods inventory           38,000	38 comma 00038,000
Ending finished goods inventory                30,000	30 comma 00030,000
Cost of goods manufactured                     250,000	250 comma 000250,000
Sales                                                         304,000	304 comma 000304,000

What is the gross profit margin earned by the​ company?

a. $46,000

b. $55,000

c. $62,000

d. $63,000

Answer 1

Solution 1:

Total Fixed cost per unit = Fixed Manufacturing overhead per unit + administrative salaries per unit

= $25 + $12 = $37 per unit

Total cost per unit = $115

Percentage of Total fixed cost per unit to the total cost = $37 / $115 = 32.173% = 32%

Hence option "c" is correct

Solution 2:

Manufacturing cost per unit = Total Manufacturing cost / units manufactured = $315,000 / 7000 = $45 per unit

Ending inventory = Units manufactured + Beginning inventory - units sold = 7000 +1750 - 6300 = 2,450 units

Manufacturing cost for ending inventory = Ending inventory * Manufacturing cost per unit = 2450 *$45 = $110,250

Hence option "d" is correct.

Solution 3:

Cost of goods sold = Cost of goods manufactured + Beginning finished goods inventory  - Ending finished goods inventory

= $250,000 + $38,000 - $30,000 = $258,000

Gross profit margin = Sales - Cost of goods sold = $304,000 - $258,000 = $46,000

Hence Option "a" is correct.