Product Cost Method of Product Costing MyPhone, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,000 cell phones are as follows Variable costs per unit: Direct materials $70 34 25 Selling and administrative expenses 21 Total variable cost per unit $150 Direct labor Factory overhead Fixed costs: Factory overhead $200,800 Selling and administrative expenses 69,000 MyPhone desires a profit equal to a 14% return on invested assets of $601,400. Determine the amount of desired profit from the production and sale of 5,000 cell phones. b. Determine the product cost per unit for the production of 5,000 cell phones. Round your answer to the nearest whole dollar. per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar. Total Cost per unit Markup per unit per unit Selling price
Product Cost Method of Product Costing MyPhone, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,000 cell phones are as follows Variable costs per unit: Direct materials $70 34 25 Selling and administrative expenses 21 Total variable cost per unit $150 Direct labor Factory overhead Fixed costs: Factory overhead $200,800 Selling and administrative expenses 69,000 MyPhone desires a profit equal to a 14% return on invested assets of $601,400. Determine the amount of desired profit from the production and sale of 5,000 cell phones. b. Determine the product cost per unit for the production of 5,000 cell phones. Round your answer to the nearest whole dollar. per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar. Total Cost per unit Markup per unit per unit Selling price
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 17E: Product cost method of product costing Smart Stream Inc. uses the product cost method of applying...
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