FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Want the Correct answerarrow_forwardThe following costs related to Lillian Company: Variable Costs per unit: Direct materials $2.50 Direct labor $0.75 Overhead $1.25 Selling & Administrative $1.50 Fixed Costs: Overhead $10,000 Selling & Administrative $5,000 Each unit sells for $15.00. At a sales volume of 15,000 units, what is Lillian Company’s total cost?arrow_forwardRequired information [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Total variable cost 2 5. If 8,000 units are produced and sold, what is the total amount of variable costs related to the units produced and sold? (Do not round intermediate calculations.) W S X H # 3 E D C $ 4 - 2023-01...0.40 PM 2023-01...2.52 PM 2022-12...6.4. - 9 M AO < K -0 ) O O V H I' P A commandarrow_forward
- Required information [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $205 and $164, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 127,000 units of each product. Its unit costs for each product at this level of activity are given below: Direct materials Direct labour Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Cost per unit Contribution margin per pound Alpha $40 Alpha 37 24 Beta 32 29 32 $194 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars. Beta $ 24 30 22 12. What contribution margin per pound of raw material is earned by Alpha and Beta? (Round your answers to 2 decimal places.)…arrow_forwardRequired information [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost Per Unit $6.00 $3.50 Average fixed manufacturing cost per unit $ 1.50 $ 4.00 $ 3.00 $2.00 $ 1.00 $ 0.50 7. If 8,000 units are produced, what is the average fixed manufacturing cost per unit produced? Note: Round your answer to 2 decimal places.arrow_forwardKesterson Corporation has provided the following information: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense Cost per Unit $ 6.30 $ 3.30 $ 1.25 $ 1.30 $ 0.60 Cost per Period $ 15,000 $ 4,200 If 7,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:arrow_forward
- Required information [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $185 and $120, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 112,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $30 Answer is not complete. 22 20 24 20 23 $ 139 Financial advantage Beta $ 10 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 29 13 26 16 18 $112 8. Assume that Cane normally produces and sells 68,000 Betas and 88,000 Alphas per year. If Cane…arrow_forwardRequired information [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: @ 2 6. If 12,500 units are produced and sold, what is the total amount of variable costs related to the units produced and sold? (Do not round intermediate calculations.) Direct materials Direct labor S Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Total variable cost W 00 Xx # 3 E D C $ 4 R FL 1 1 ( 2023-01...0.40 PM 2023-01...2.52 PM 2022-12 9 M A ^ K O 0 J € Ch Parrow_forwardMemanarrow_forward
- Dake Corporation's relevant range of activity is 2,300 units to 5,500 units. When it produces and sells 3,900 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Multiple Choice For financial reporting purposes, the total amount of product costs incurred to make 3,900 units is closest to: $57,915 $48,165 $61,815 Average Cost per Unit $ 6.80 $ 4.00 $ 1.55 $9,750 $2.50 $ 1.15 $ 0.85 $0.95 $ 0.85arrow_forwardRequired information. Cost Classifications (Algo) [The following information applies to the questions displayed below] Kubin Company's relevant range of production is 26,000 to 35,500 units. When it produces and sells 30,750 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $8.50 $5.60 $ 3.10 1. Total amount of product cost 2. Total amount of period cost 3. Total amount of product cost 4 Total amount of period cost $6.60 $5.10 $.4.10 $2.00 $2.10 Exercise 1-8 (Algo) Product Costs and Period Costs; Variable and Fixed Costs [LO1-3, LO1-4] Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 30,750 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 30,750 units? 3. For…arrow_forward! Required information [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $155 and $115, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 110,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $ 24 23 Total common fixed expenses 432 22 23 19 22 $ 133 2. What is the company's total amount of common fixed expenses? Beta $ 12 26 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 12 25 15 17 $ 107arrow_forward
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