(Click on the icon to view the cost data.) (Click on the icon to view the unit product cost data.) roduct X sells for $175 per unit. Assume no beginning inventories. ead the requirements. egin by selecting the labels and computing the gross profit for scenario a. and then compute the gross profit for scenario b. and c. Absorption costing a b. C. Gross Profit Reference 2.000 units 2,500 units 5,000 units 42 $ 42 52 52 Direct materials Direct labor $ 42 S 52 Data table Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Print Done $42 per unit 52 per unit 11 per unit 20.000 per year

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 22E: Total cost method of product pricing Based on the data presented in Exercise 17, assume that Smart...
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Adams, Inc. has the following cost data for Product X, and unit product cost using absorption costing when production is 2,000 units, 2,500 units, and 5,000 units.
(Click on the icon to view the cost data.) (Click on the icon to view the unit product cost data.)
Product X sells for $175 per unit. Assume no beginning inventories.
Read the requirements.
Data table
Begin by selecting the labels and computing the gross profit for scenario a. and then compute the gross profit for scenario b. and c.
Absorption costing
a.
b.
C.
Gross Profit
Reference
2,000 units
2,500 units 5,000 units
42 $
42
52
52
11
11
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Total unit product cost
Print
$
$
42 S
52
11
10
115 $
Done
8
113 $
4
109
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Print
Done
$42 per unit
52 per unit
11 per unit
20,000 per year
Transcribed Image Text:Adams, Inc. has the following cost data for Product X, and unit product cost using absorption costing when production is 2,000 units, 2,500 units, and 5,000 units. (Click on the icon to view the cost data.) (Click on the icon to view the unit product cost data.) Product X sells for $175 per unit. Assume no beginning inventories. Read the requirements. Data table Begin by selecting the labels and computing the gross profit for scenario a. and then compute the gross profit for scenario b. and c. Absorption costing a. b. C. Gross Profit Reference 2,000 units 2,500 units 5,000 units 42 $ 42 52 52 11 11 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit product cost Print $ $ 42 S 52 11 10 115 $ Done 8 113 $ 4 109 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Print Done $42 per unit 52 per unit 11 per unit 20,000 per year
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