Product Cost Concept of Product Costing MyPhone Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 5,310 cellular phones are as follows: Variable costs: Fixed costs: Direct materials $67 per unit Factory overhead $198,000 Direct labor 36 Selling and administrative expenses 68,600 Factory overhead 22 Selling and administrative expenses 23 Total $148 per unit MyPhone wants a profit equal to a 15% rate of return on invested assets of $602,000. a. Determine the amount of desired profit from the production and sale of 5,310 cellular phones. $fill in the blank 1 b. Determine the product cost and the cost amount per unit for the production of 5,310 cellular phones. If required, round your answer to nearest dollar. $fill in the blank 2 per unit c. Determine the product cost markup percentage (rounded to two decimal places) for cellular phones. fill in the blank 3 % d. Determine the selling price of cellular phones. Round to the nearest dollar. Cost $fill in the blank 4 per unit Markup fill in the blank 5 Selling price $fill in the blank 6 per unit
Product Cost Concept of Product Costing MyPhone Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 5,310 cellular phones are as follows: Variable costs: Fixed costs: Direct materials $67 per unit Factory overhead $198,000 Direct labor 36 Selling and administrative expenses 68,600 Factory overhead 22 Selling and administrative expenses 23 Total $148 per unit MyPhone wants a profit equal to a 15% rate of return on invested assets of $602,000. a. Determine the amount of desired profit from the production and sale of 5,310 cellular phones. $fill in the blank 1 b. Determine the product cost and the cost amount per unit for the production of 5,310 cellular phones. If required, round your answer to nearest dollar. $fill in the blank 2 per unit c. Determine the product cost markup percentage (rounded to two decimal places) for cellular phones. fill in the blank 3 % d. Determine the selling price of cellular phones. Round to the nearest dollar. Cost $fill in the blank 4 per unit Markup fill in the blank 5 Selling price $fill in the blank 6 per unit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Product Cost Concept of Product Costing
MyPhone Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 5,310 cellular phones are as follows:
| Variable costs: | Fixed costs: | ||||||
| Direct materials | $67 | per unit | Factory overhead | $198,000 | |||
| Direct labor | 36 | Selling and administrative expenses | 68,600 | ||||
| Factory overhead | 22 | ||||||
| Selling and administrative expenses | 23 | ||||||
| Total | $148 | per unit |
MyPhone wants a profit equal to a 15% rate of
a. Determine the amount of desired profit from the production and sale of 5,310 cellular phones.
$fill in the blank 1
b. Determine the product cost and the cost amount per unit for the production of 5,310 cellular phones. If required, round your answer to nearest dollar.
$fill in the blank 2 per unit
c. Determine the product cost markup percentage (rounded to two decimal places) for cellular phones.
fill in the blank 3 %
d. Determine the selling price of cellular phones. Round to the nearest dollar.
| Cost | $fill in the blank 4 | per unit |
| Markup | fill in the blank 5 | |
| Selling price | $fill in the blank 6 | per unit |
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