ACCT640 - Chapter 5 - Homework
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CompuDesk, Inc., makes an oak desk specially designed for personal computers. The desk sells for $200. Data for last year’s operations follow: |
| Units in beginning inventory | 0 | |
| Units produced | 10,000 | |
| Units sold | 9,000 | |
| Units in ending inventory | 1,000 | |
| Variable costs per unit: | ||
| Direct materials | $ 60 | |
| Direct labor | 30 | |
| Variable manufacturing overhead | 10 | |
| Variable selling and administrative | 20 | |
| Total variable cost per unit | $ 120 | |
| Fixed costs: | ||
| Fixed manufacturing overhead | $ | 300,000 |
| Fixed selling and administrative | 450,000 | |
| Total fixed costs | $ | 750,000 |
| Required: |
| 1. | Assume that the company uses absorption costing. Compute the unit product cost for one computer desk.
|
13 years ago
