information concerning sales and production for February is summarized as follows: a. Estimated sales of King and Prince chairs for February by sales territory: Northern Domestic King 610 units at $780 per unit Prince 750 units at $550 per unit. Southern Domestic King 340 units at $780 per unit Prince 440 units at $550 per unit International: King 360 units at $850 per unit Prince 290 units at $600 per unit b. Estimated inventories at February 1: Direct materials: Fabric Wood Filler Springs Finished products King Prince Filler Springs Finished products: King Prince c. Desired inventories at February 28: Direct materials: Fabric Wood Fabric Wood Filler Springs Fabric Wood Filler Springs In manufacture of Prince: Fabric Wood 420 sq yds. 580 linear f King: 250 cu. ft 660 units d. Direct materials used in production: In manufacture of King: 90 25 units units Prince: Framing Department Cutting Department Upholstery Department 390 sq yds 650 linear fr 300 cu. ft Framing Department Cutting Department Upholstery Department 540 units 4.0 sq yds per unit of product 26 linear ft per unit of product. 3.4 cu. ft. per unit of product 12 units per unit of product e. Anticipated purchase price for direct materials: 80 units 6.0 sq yds per unit of product 38 linear ft. per unit of product. 35 units 4.2 cu. ft. per unit of product 16 units per unit of product Filler Springs f. Direct labor requirements: $12.00 per sq yd 7.00 per linear ft. $3.00 per cu. ft. 4.50 per unit 1.2 hrs. at $12 per hr. 0.5 hr at $14 per hr. 0.8 hr at $15 per hr. 1.0 hr at $12 per hr. 0.4 hr at $14 per hr. 0.6 hr at $15 per hr.
information concerning sales and production for February is summarized as follows: a. Estimated sales of King and Prince chairs for February by sales territory: Northern Domestic King 610 units at $780 per unit Prince 750 units at $550 per unit. Southern Domestic King 340 units at $780 per unit Prince 440 units at $550 per unit International: King 360 units at $850 per unit Prince 290 units at $600 per unit b. Estimated inventories at February 1: Direct materials: Fabric Wood Filler Springs Finished products King Prince Filler Springs Finished products: King Prince c. Desired inventories at February 28: Direct materials: Fabric Wood Fabric Wood Filler Springs Fabric Wood Filler Springs In manufacture of Prince: Fabric Wood 420 sq yds. 580 linear f King: 250 cu. ft 660 units d. Direct materials used in production: In manufacture of King: 90 25 units units Prince: Framing Department Cutting Department Upholstery Department 390 sq yds 650 linear fr 300 cu. ft Framing Department Cutting Department Upholstery Department 540 units 4.0 sq yds per unit of product 26 linear ft per unit of product. 3.4 cu. ft. per unit of product 12 units per unit of product e. Anticipated purchase price for direct materials: 80 units 6.0 sq yds per unit of product 38 linear ft. per unit of product. 35 units 4.2 cu. ft. per unit of product 16 units per unit of product Filler Springs f. Direct labor requirements: $12.00 per sq yd 7.00 per linear ft. $3.00 per cu. ft. 4.50 per unit 1.2 hrs. at $12 per hr. 0.5 hr at $14 per hr. 0.8 hr at $15 per hr. 1.0 hr at $12 per hr. 0.4 hr at $14 per hr. 0.6 hr at $15 per hr.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter12: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 12.16E: Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that...
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