Finance Essay

595 Words Sep 7th, 2014 3 Pages
5-11
Manufacturing Overhead - $180,000
Divided by units produced - $50,000
Fixed Manufacturing Overhead / unit - $3.60
Direct Labor / Unit - $4.00
Direct Material / Unit - $5.00
Variable Manufacturing Overhead / unit - 3.00

Shovels produced - 50,000
Shovels sold - (45,000)
Shovels left in inventory - 5,000
X Cost / Unit - $15.60
Value of ending Inventory - $78,000

5-12
Direct Material / unit - $5
Direct Labor / Unit - 4
Variable Manufacturing Overhead / unit - 3
Cost / unit - $12

Shovels Produced - 50,000
Shovels Sold - (45,000)
Shovels in ending inventory - 5,000
X cost / unit - $12
Value of ending inventory - $60,000

5-13
Shovels produced - 50,000
…show more content…
2014 2015 2016
Fixed Production overhead $50,000 $50,000 $50,000
Divided by units produced- 5,000 6,000 4,000
Fixed production overhead / unit- $10 $8.33 $12.50
Variable production cost / unit 75 75 75
Full Cost / unit (rounded)- $85 $83.33 $87.50
Sales $ 1,125,000 $ 1,125,000 $ 1,125,000

Ending inventory $ 83,330

B.

C.
Fixed production overhead $ 50,000 $ 50,000 $50,000
Variable production costs / unit 75 75 75
Units sold 5,000 5,000 5,000
Selling price / unit $225 $225 $225
Sales $1,125,000 $1,125,000 $1,125,000 variable cost of goods sold: 375,000 375,000 375,000
Contribution margin 750,000 750,000 750,000 fixed costs: Production 50,000 50,000 50,000
Selling and administrative 5,000 5,000 5,000
Net income $ 695,000 $ 695,000 $ 695,000
Ending inventory $ 75,000

PROBLEM 5-15.

A.
Fixed manufacturing overhead $2,750,000
Divided by units produced 250,000
Fixed manufacturing overhead / unit 11
Variable manufacturing costs / unit 110
Full cost / unit $121

Sales

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