Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need help with d only Total Cost Concept of Product Costing Willis Products Inc. uses the total cost concept of applying the cost-plus approach to

Need help with d only

Total Cost Concept of Product Costing

Willis Products Inc. uses the total cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 5,000 units of medical tablets are as follows:

Variable costs per unit: Fixed costs:
Direct materials $114 Factory overhead $200,000
Direct labor 42 Selling and admin. exp. 65,000
Factory overhead 35
Selling and admin. exp. 29
Total $220

Willis Products desires a profit equal to a 25% rate of return on invested assets of $393,120.

image text in transcribed

Willis Products desires a profit equal to a 25% rate of return on invested assets of $393,120. a. Determine the amount of desired profit from the production and sale of 5,000 units. $98,280 b. Determine the total costs for the production of 5,000 units 1,100,000 V Fixed 265,000 V Total1,365,000 Determine the cost amount per unit for the production and sale of 5,000 units. 273 V per unit c. Determine the total cost markup percentage per unit. (rounded to one decimal place). 7.2 % d. Determine the selling price per unit. Round to the nearest cent. 292.7X per unit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing A Practical Approach With Data Analytics

Authors: Raymond N. Johnson, Laura Davis Wiley, Robyn Moroney, Fiona Campbell, Jane Hamilton

2nd Edition

1119786045, 978-1119785996

More Books

Students also viewed these Accounting questions

Question

What is disadvantage of buying vs leasing vehicle?

Answered: 1 week ago