Question
a. The total conversion cost for the month was: b. The total prime cost was: c. The total product cost was: d. Total expenses: 2.
a. The total conversion cost for the month was:
b. The total prime cost was:
c. The total product cost was:
d. Total expenses:
2. The Old Towne Manufacturing Company produces the following three products:
1-Jul-2020 | 31-Jul-2020 | ||||
Work in process | 19,000 | 20,000 | |||
Raw materials | 24,000 | 29,000 | |||
Finished goods | 55,000 | 30,000 | |||
Other data: | |||||
Direct labor cost | 55,000 | ||||
Factory overhead cost | 82,000 | ||||
Selling expenses | 19,000 | ||||
Raw materials purchases | 58,000 | ||||
Administrative expenses | 42,000 |
Saws | Knives | Measuring Tapes | |
Selling Price per unit | $40 | $16 | $50 |
Variable Cost per unit | 28 | 12 | 30 |
Contribution per unit | 12 | 4 | 20 |
Fixed Costs are $76,000 per year
50% of all sales in units are Saws, 30 percent are Knives, and 20 percent are Measuring Tapes
a. What is the breakeven point in total units? Round off to the nearest whole number
b. Number of saws that will be sold to breakeven?
c. Total sales in units to obtain a before-tax profit of $19,000? Round off to the nearest whole number.
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