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No. 3 b question please help me correct question 3b d Modems, Inc. makes modem cards that are used in notebook computers. The company completed
No. 3 b question
please help me correct question 3b
d Modems, Inc. makes modem cards that are used in notebook computers. The company completed the following transactions during 2017 All purchases and sales were made with cash 1. Acquired $760,000 of cash from the owners. 2. Purchased $290,000 of manufacturing equipment. The equipment has a $42,000 salvage value and a four-year us eful life. Label the purchase of the equipment as Event 2a and the recognition of depreciation as Event 2b 3. The comp any started and completed 5,400 modems. Direct materials purchased and used amounted to $42 per unit. 4. Direct labor costs amounted to $27 per unit. 5. The cost of manufacturing supplies used amounted to $6 per unit. 6. The company paid $52,000 to rent the manufacturing facility. 7. Magnificent sold all 5,400 units at a cash price of $130 per unit. (Hint It will be necessary to determine the man order to record the cost of goods sold.) 8. The sales staff was paid a $6 per unit sales commission. 9. Paid $41,000 to purchase equipment for administrative offices. The equipment was expected to have a $3,200 salvage value and a three-year useful life. Label the purchase of the equipment as Event 9a and the recognition of depreciat 10. A ion as Event 9b dministrative expenses consisting of office rental and salaries amounted to $72,250. Required a. Based on these data, identify each cost incurred by the company as() fixed versus variable relative to th 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 question marks in the fol llowing table to indicate the product cost per unit assuming levels of production of 5,400, 6,400, 7,400, and 8,400. Complete this question by entering your answers in the tabs below. Required A Required B Complete the following table to indicate the product cost per unit assuming levels of production of 5,400, 6,400, 7,400, and 8,400. (Round "Cost per unit" to 2 decimal places.) Production Levels Per Unit 5,400 6,400 7,400 8,400 75 O s 405,000480,000 5550630,000 Variable cost Fixed cost Total (Cost of goods sold) Cost per unit 1,140,000 114,000114,000114,000 744,000 $96.11 S 110.00S123.89 137.78 s 519,000 $594,000 $594,000 K Required A Required BStep by Step Solution
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