The Dotson Company began business on January 1, 2016. During the year, the company paid $120,000 for materials used in the production process and $300,000 in wages for the production workers. The rent and utilities of the manufacturing plant totaled $80,000. Selling costs amounted to $150,000. The company made 250,000 units and sold 210,000 units for $5 each. What was the company’s production cost per unit?

The Dotson Company began business on January 1, 2016. During the year, the company paid $120,000 for materials used in the production process and $300,000 in wages for the production workers. The rent and utilities of the manufacturing plant totaled $80,000. Selling costs amounted to $150,000. The company made 250,000 units and sold 210,000 units for $5 each. What was the company’s production cost per unit?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Murry, Inc. produced 1,000 units of company's product in 2024. The standard quantity of direct materials was three yards of cloth per unit at a standard cost of $1.35 per yard. The accounting records showed that 2,500 yards of cloth were used and the company paid $1.40 per yard. Standard time was two direct labor hours per unit at a standard rate of $12.00 per direct labor hour. Employees worked 1,700 hours and were paid $10.50 per hour. What are the benefits of setting cost standards? Calculate the direct materials cost variance and the direct material effeciency variance as well as the direct labor cost and effeciency variances.
During its first year of operations, Silverman Company paid $16,360 for direct materials and $10,300 for production workers' wages. Lease payments and utilities on the production facilities amounted to $9,300 while general, selling, and administrative expenses totaled $4,800. The company produced 6,200 units and sold 3,800 units at a price of $8.30 a unit. What is Silverman's cost of goods sold for the year?
Gibson Manufacturing Co. expects to make 31,500 chairs during the 2017 accounting period. The company made 4,600 chairs in January. Materials and labor costs for January were $16,700 and $24,500, respectively. Gibson produced 1,500 chairs in February. Material and labor costs for February were $9,800 and $12,600, respectively. The company paid the $346,500 annual rental fee on its manufacturing facility on January 1, year 1. The rental fee is allocated based on the total estimated number of units to be produced during the year. Required Assuming that Perez desires to sell its chairs for cost plus 25 percent of the cost, what price should be charged for the chairs produced in January and February? (Round intermediate calculations and final answers to 2 decimal places.) What is the price for January and February (Please be detailed)?
Gibson Manufacturing Co. expects to make 31,500 chairs during the 2017 accounting period. The company made 4,600 chairs in January. Materials and labor costs for January were $16,700 and $24,500, respectively. Gibson produced 1,500 chairs in February. Material and labor costs for February were $9,800 and $12,600, respectively. The company paid the $346,500 annual rental fee on its manufacturing facility on January 1, year 1. The rental fee is allocated based on the total estimated number of units to be produced during the year. Required Assuming that Perez desires to sell its chairs for cost plus 25 percent of the cost, what price should be charged for the chairs produced in January and February? (Round intermediate calculations and final answers to 2 decimal places.)
Rubble, Inc. produced 1,000 backpacks, the company's product in 2020. The standard cost was 3 yards of cloth at a standard cost of $1.00 per yard. The accounting records show that 2,900 yards of cloth were used, and the company paid $1.05 per yard. Standard time to make the backpacks was 2 direct labor hours per unit at a standard rate of $9.75 per direct labor hours. Employees worked a total of 1,800 hours and were paid $9.25 per hour.1. Calculate the direct materials cost variance and the direct materials efficiency variance.
Ybarra Products began operations in 207. During its first year, the company purchased raw materials costing $84,000 and used $63,000 on those materials in the production of its products. The company’s manufacturing operations also incurred labor cost of $58,000 and overhead cost of $28,000. At year-end 2017, Ybarra had $29,000 of partially completed products in work in process inventory and $35,000 in finished goods inventory. What was Ybarra Company’s cost of good s sold in 2017?
Rubble, Inc. produced 1,100 backpacks, the company's product in 2020. The standard cost was 4 yards of cloth at a standard cost of $0.90 per yard. The accounting records show that 2,700 yards of cloth were used, and the company paid $1.15 per yard. Standard time to make the backpacks was 2 direct labor hours per unit at a standard rate of $9.80 per direct labor hours. Employees worked a total of 1,500 hours and were paid $9.15 per hour.Calculate the direct labor cost variance.
Rubble, Inc. produced 1,040 backpacks, the company's product in 2020. The standard cost was 3 yards of cloth at a standard cost of $0.80 per yard. The accounting records show that 2,900 yards of cloth were used, and the company paid $1.05 per yard. Standard time to make the backpacks was 2 direct labor hours per unit at a standard rate of $9.80 per direct labor hours. Employees worked a total of 1,800 hours and were paid $9.15 per hour.Calculate the direct labor efficiency variance.
Rubble, Inc. produced 1,180 backpacks, the company's product in 2020. The standard cost was 4 yards of cloth at a standard cost of $1.00 per yard. The accounting records show that 2,900 yards of cloth were used, and the company paid $1.05 per yard. Standard time to make the backpacks was 2 direct labor hours per unit at a standard rate of $9.65 per direct labor hours. Employees worked a total of 1,600 hours and were paid $9.15 per hour.Calculate the direct materials cost variance.
During its first year of operations, Forrest Company paid $30,000 for direct materials and $50,000 in wages for production workers. Lease payments, utility costs, and depreciation on factory equipment totaled $15,000. General, selling, and administrative expenses were $20,000. The average cost to produce one unit was $2.50. How many units were produced during the period?
The Rafan Company manufactures a product which is sold at Rs.16 each. Under present business conditions, the company is operating at 30% normal capacity with production and sales of 8,000 units per month. An analysis of costs for a recent month sows: Direct Materials Rs. 10,000 Direct Labor 12,000 Superintendent’s salary 5,000 Depreciation Building 2,000 Heat and light 500 Indirect labor 6,000 Deprecation of machinery 3,000 Machinery Repair 1,000 Fire Insurance 1,500 Miscellaneous 8,00 Factory Rent 5,000 Property Tax 400 Total Rs. 47,200 The total marketing expenses were Rs. 50,000, which included 3,000 for packing and shipping. The sales on the special order would require a similar unit cost for packing and shipping. The total administrative and general costs were Rs. 7,000. An offer has been received from a large chain store to purchase 96,000 units to be shipped in equal months each month during the coming year. These units would be manufactured with slight immaterial modifications…