Product Cost Method of Product Costing

Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 4,900 cell phones are as follows:

Variable costs per unit:

Line Item Description	Amount
Direct materials	$62
Direct labor	40
Factory overhead	25
Selling and administrative expenses	19
Total variable cost per unit	$146

Fixed costs:

Line Item Description	Amount
Factory overhead	$199,900
Selling and administrative expenses	71,000

Voice Com desires a profit equal to a 13% return on invested assets of $599,500.

a. Determine the amount of desired profit from the production and sale of 4,900 cell phones. fill in the blank 1 of 1$

b. Determine the product cost per unit for the production of 4,900 cell phones. Round your answer to the nearest whole dollar. fill in the blank 1 of 1$per unit

c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. %

d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar.

Line Item Description	Amount
Total Cost	$fill in the blank 4 per unit
Markup	fill in the blank 5 per unit
Selling price	$fill in the blank 6 per unit

Wxiable costa per una: Determine the predatt cont per unie for the presuttion of 4,900 coli phonec. Round your answer to the nearest whele dollar. C. Ortammine the product cont ranup percmage for cell phones. Round your antwer to two decimal places. d. Dettrinine the sefeng fack of cell phones. Rousd your answers to the mearest whole dollar. a. Mantiply the desired prefit percentage ty the detired anount (invotee assets). b. Dwise the totaf marufecturing (variable and fixed) costa by the number of units produced: C Dive the delired profit plis the total selling and admenistrative ewpenses by the totac manufacturng cost. 4. Add cont (s) end markup {(c)=(b)}