Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN: 9781337115773
Author: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher: Cengage Learning
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Textbook Question
Chapter 2, Problem 38E
Total and Unit Product Cost
Martinez Manufacturing Inc. showed the following costs for last month:
Last month, 4,000 units were produced and sold.
Required:
- 1. Classify each of the costs as product cost or period cost.
- 2. What is the total product cost for last month?
- 3. What is the unit product cost for last month?
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Total and Unit Product Cost
Martinez Manufacturing Inc. showed the following costs for last month:
Direct materials
$7,000
Direct labor
3,000
Manufacturing overhead
2,000
Selling expense
8,000
Last month, 4,000 units were produced and sold.
Required:
 Classify each of the costs as product cost or period cost.
Direct materials
Â
Direct labor
Â
Manufacturing overhead
Â
Selling expense
Â
 What is the total product cost for last month?$
 What is the unit product cost for last month?$per unit
Â
Product Cost in Total and Per Unit
Grin Company manufactures digital cameras. In January, Grin produced 4,000 cameras with the following costs:
Direct materials
$400,000
Direct labor
80,000
Manufacturing overhead
320,000
There were no beginning or ending inventories of WIP.
Required:
 What was the total product cost in January?The total product cost in January is $.
 What was the product cost per unit in…
Acacia Manufacturing has compiled the following information from the accounting system for the one product it sells:
$45 per unit
Sales price
Fixed costs (for the month)
Marketing and administrative
Manufacturing overhead
Variable costs (per unit)
Marketing and administrative
Direct materials
Manufacturing overhead
Direct labor
Units produced and sold (for the month)
Required:
a. Calculate the product costs per unit
Note: Round your answer to 2 decimal places.
b. Calculate the period costs for the period.
$ 23,100
$ 8,400
Exercise 2-55 (Static) Components of Full Costs (LO 2-6)
a. Product costs per unit
b. Period costs
$2
$ 13
$3
$9
21,000
The manufacturing costs of Mocha Industries for three months of the year are as follows:
Total Cost
Production
April
$97,208
1,560 Units
May
98,324
2,180
June
100,106
3,170
a. Using the high-low method, determine the variable cost per unit. Round your answer to two decimal places.
per unit
b. Using the high-low method, determine the total fixed costs.
Chapter 2 Solutions
Managerial Accounting: The Cornerstone of Business Decision-Making
Ch. 2 - Explain the difference between cost and expense.Ch. 2 - What is the difference between accumulating costs...Ch. 2 - What is a cost object? Give some examples.Ch. 2 - What is a direct cost? An indirect cost? Can the...Ch. 2 - What is allocation?Ch. 2 - What is the difference between a product and a...Ch. 2 - Define manufacturing overhead.Ch. 2 - Explain the difference between direct materials...Ch. 2 - Define prime cost and conversion cost. Why cant...Ch. 2 - How does a period cost differ from a product cost?
Ch. 2 - Define selling cost. Give five examples of selling...Ch. 2 - What is the cost of goods manufactured?Ch. 2 - What is the difference between cost of goods...Ch. 2 - What is the difference between the income...Ch. 2 - Why do firms like to calculate a percentage column...Ch. 2 - Accumulating costs means that a. costs must be...Ch. 2 - Product (or manufacturing) costs consist of a....Ch. 2 - Use the following information for Multiple-Choice...Ch. 2 - Prob. 4MCQCh. 2 - The accountant in a factory that produces biscuits...Ch. 2 - Which of the following is an indirect cost? a. The...Ch. 2 - Prob. 7MCQCh. 2 - Kelloggs makes a variety of breakfast cereals....Ch. 2 - Prob. 9MCQCh. 2 - Stone Inc. is a company that purchases goods...Ch. 2 - JackMan Company produces die-cast metal bulldozers...Ch. 2 - Prob. 12MCQCh. 2 - Use the following information for Multiple-Choice...Ch. 2 - Use the following information for Multiple-Choice...Ch. 2 - Use the following information for Multiple- Choice...Ch. 2 - Prob. 16MCQCh. 2 - Use the following information for Multiple-Choice...Ch. 2 - 2-18 Use the following information for Multiple-...Ch. 2 - Use the following information for Brief Exercises...Ch. 2 - Use the following information for Brief Exercises...Ch. 2 - Direct Materials Used in Production Slapshot...Ch. 2 - Cost of Goods Manufactured Slapshot Company makes...Ch. 2 - Cost of Goods Sold Slapshot Company makes ice...Ch. 2 - Use the following information for Brief Exercises...Ch. 2 - Use the following information for Brief Exercises...Ch. 2 - Prob. 26BEACh. 2 - Prob. 27BEBCh. 2 - Prob. 28BEBCh. 2 - Direct Materials Used in Production Morning Smiles...Ch. 2 - 2-30 Cost of Goods Manufactured Morning Smiles...Ch. 2 - Cost of Goods Sold Morning Smiles Coffee Company...Ch. 2 - Use the following information for Brief Exercises...Ch. 2 - Use the following information for Brief Exercise:...Ch. 2 - Service Organization Income Statement Healing...Ch. 2 - Prob. 35ECh. 2 - Products versus Services, Cost Assignment Holmes...Ch. 2 - Assigning Costs to a Cost Object, Direct and...Ch. 2 - Total and Unit Product Cost Martinez Manufacturing...Ch. 2 - Cost Classification Loring Company incurred the...Ch. 2 - Classifying Cost of Production A factory...Ch. 2 - Use the following information for Exercises 2-41...Ch. 2 - Use the following information for Exercises 2-41...Ch. 2 - Direct Materials Used Hannah Banana Bakers makes...Ch. 2 - Cost of Goods Sold Allyson Ashley makes jet skis....Ch. 2 - Use the following information for Exercises 2-45...Ch. 2 - Use the following information for Exercises 2-45...Ch. 2 - Use the following information for Exercises 2-47...Ch. 2 - Use the following information for Exercises 2-47...Ch. 2 - Use the following information for Exercises 2-47...Ch. 2 - Understanding the Relationship between Cost Flows,...Ch. 2 - Manufacturing, Cost Classification, Product Costs...Ch. 2 - Cost Assignment, Direct Costs Harry Whipple, owner...Ch. 2 - Cost of Direct Materials, Cost of Goods...Ch. 2 - Preparation of Income Statement: Manufacturing...Ch. 2 - Cost of Goods Manufactured, Cost of Goods Sold...Ch. 2 - Cost Identification Following is a list of cost...Ch. 2 - Income Statement, Cost of Services Provided,...Ch. 2 - Cost of Goods Manufactured, Income Statement W. W....Ch. 2 - Cost Definitions Luisa Giovanni is a student at...Ch. 2 - Cost Identification and Analysis, Cost Assignment,...Ch. 2 - Cost Analysis, Income Statement Five to six times...Ch. 2 - Cost Classification, Income Statement Gateway...Ch. 2 - Cost Information and Ethical Behavior, Service...
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