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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.
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 unitStep by Step Solution
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