Learned Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 5.00 Direct labor $ 4.25 Variable manufacturing overhead $ 1.85 Fixed manufacturing overhead $ 35,000 Sales commissions $ 0.70 Variable administrative expense $ 0.60 Fixed selling and administrative expense $ 9100 Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 7000 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 7000 units? c. If the selling price is $23.80 per unit, what is the contribution margin per unit sold? (Round your answer to 2 decimal places.) d. If 8000 units are produced, what is the total amount of direct manufacturing cost incurred? e. If 8000 units are produced, what is the total amount of indirect manufacturing costs incurred? a. Total product (manufacturing) cost b. Total period (manufacturing) cost c. Contribution margin per unit d. Total direct manufacturing cost e. Total indirect manufacturing cost
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
1)
Learned Corporation has provided the following information:
Cost per
Unit
Cost per Period
Direct materials $ 5.00
Direct labor $ 4.25
Variable manufacturing overhead $ 1.85
Fixed manufacturing overhead $ 35,000
Sales commissions $ 0.70
Variable administrative expense $ 0.60
Fixed selling and administrative expense $ 9100
Required:
a. For financial reporting purposes, what is the total amount of product costs
incurred to make 7000 units?
b. For financial reporting purposes, what is the total amount of period costs
incurred to sell 7000 units?
c. If the selling price is $23.80 per unit, what is the contribution margin per unit
sold? (Round your answer to 2 decimal places.)
d. If 8000 units are produced, what is the total amount of direct manufacturing
cost incurred?
e. If 8000 units are produced, what is the total amount of indirect
costs
a. Total product (manufacturing) cost
b. Total period (manufacturing) cost
c. Contribution margin per unit
d. Total direct manufacturing cost
e. Total indirect manufacturing cost
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