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What is the cost per equivalent unit for transferred-in cost?
Question 2.
Question :
(TCO 4) Assume that we are
manufacturing a product and assume that the sales price per unit is $80,
the variable cost is $20 per unit, and the fixed cost is $90,000; a) how
many units would we need to sell to break even? b) How many units
would we need to sell to earn a profit of $120,000? c) How many units
do we need to sell to double that profit to $240,000? D) Why didn't the
number of units double from Part B to Part C?
Question 3.
Question :
(TCO 5) Sivan Co. manufactures and sells
one product. For the year, they started with no opening inventory;
produced 100,000 units, but only sold 70,000 units. The selling price per
each unit is $60.
The variable costs per unit were:
Direct materials.........................7
Direct Labor .............................6
Variable manufacturing overhead ....5
Variable selling and administrative…6
Fixed costs per year:
Fixed manufacturing Overhead ................$700,000
Fixed Selling and Administrative expenses.. $300,000
(a) Prepare the Income Statement using Absorption Costing.
(b) Prepare the Income Statement using Variable Costing.