Question
1. Show how to compute cost of goods manufactured. Use the following amounts: direct materials used ($ 21 comma 000$21,000 ), direct labor ($ 11
1. Show how to compute cost of goods manufactured. Use the following amounts: direct materials used ($ 21 comma 000$21,000 ), direct labor ($ 11 comma 000$11,000 ), manufacturing overhead ($ 25 comma 000$25,000 ), beginning work in process inventory ($ 3 comma 000$3,000 ), and ending work in process inventory ($ 8 comma 000$8,000 ).
2. Car minus USACarUSA spent $ 480$480 million in total to produce 80 comma 00080,000 cars this year. The $ 480$480 million breaks down as follows: The company spent $ 80$80 million on fixed costs to run its manufacturing plants and $ 5 comma 000$5,000 of variable costs to produce each car. Next year, it plans to produce 100 comma 000100,000 cars using the existing production facilities. Read the requirements LOADING... related to Car minus USACarUSA.
2.aWhat is the current average product cost per car this year? Determine the formula, then calculate the current average product cost per unit.
2.b Assuming there is no change in fixed costs or variable costs per unit, what is the total forecasted cost to produce 100 comma 000100,000 cars next year? Determine the formula, then calculate the total forecasted costs.
2.c What is the forecasted average product cost per car next year? Determine the formula, then calculate the forecasted average product cost per unit. 2.d Why does the average product cost per car vary between years?
The average product cost per car decreases increases remains the same because Car minus USACarUSA will use less more the same fixed costs to produce less more cars next year. Car minus USACarUSA will be using its resources less more efficiently, so the average cost per unit wil
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