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Magnificent Modems, Inc. makes modem cards that are used in notebook computers. The company completed the following transactions during year 1. All purchases and sales

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Magnificent Modems, Inc. makes modem cards that are used in notebook computers. The company completed the following transactions during year 1. All purchases and sales were made with cash. 1. Acquired $750, eee of cash from the owner's. 2. Purchased $270,888 of manufacturing equipment. The equipment has a $30,000 salvage value and a four-year useful life. 3. The company started and conpleted 5.000 modems. Direct materials purchased and used anounted to $4e per unit. 4. Direct labor costs amounted to $25 per unit. 5. The cost of manufactoring supplies used amounted to $4 per unit. 6. The company paid $50,000 to rent the manufacturing facility, 7. Magnificent sold all 5,980 units at a cash price of $128 per unit. Corint: It will be necessary to determine the manufacturing costs in order to record the cost of goods sold.) 8. The sales staff was paid a $6 per unit sales commission 9. Paid $39,eee to purchase equipment for administrative offices. The equipment was expected to have a $3,000 salvage value and a 18. Administrative expenses consisting of office rental and salaries amounted to $21,950 Required a. Based on these data, identify each cost incurred by the company as (1) fixed versus variable relative to the number of units produced and sold and (2) product versus selling general, and administrative (SG&A). The solution for the first item is shown as an example b. Complete the following table to indicate the product cost per unit assuming levels of production of 5,000. 6,000, 7000 and 8.000 Complete this question by entering your answers in the tabs below. Reg A Req Based on these data, identify each cost incurred by the company as (1) fixed versus variable relative to the number of units produced and sold; and (2) product versus selling, general, and administrative (SG&A). The solution for the first item is shown as an example. Fixed cost Product cost Cost Item Depreciation on manufacturing equipment Direct materials Direct labor Manufacturing supplies Rent on manufacturing facility Sales commissions Depreciation on administrative equipment Administrative costs (rent and Salaries) RUQA ReqB> Complete this question by entering your answers in the tabs below. Reg A ReqB Complete the following table to indicate the product cost per unit assuming levels of production of 5,000, 6,000, 7,000, and 8,000. (Do not round intermediate calculations. Round "Cost per unit" to 2 decimal places.) 5,000 6,000 7,000 8,000 Per Unit $ 69 Production Levels Variable cost Fixed cost Total (Cost of goods sold) Cost per unit

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