Question
Product Cost Method of Product Pricing La Femme Accessories Inc. produces women's handbags. The cost of producing 1,100 handbags is as follows: Direct materials $15,300
Product Cost Method of Product Pricing
La Femme Accessories Inc. produces women's handbags. The cost of producing 1,100 handbags is as follows:
Direct materials | $15,300 |
Direct labor | 7,300 |
Factory overhead | 6,000 |
Total manufacturing cost | $28,600 |
The selling and administrative expenses are $28,600. The management desires a profit equal to 18% of invested assets of $503,000.
If required, round your answers to nearest whole number.
a. Determine the amount of desired profit from the production and sale of 1,100 handbags. $fill in the blank 1
b. Determine the product cost per unit for the production of 1,100 handbags. $fill in the blank 2per unit
c. Determine the product cost markup percentage for handbags. fill in the blank 3 %
d. Determine the selling price of handbags. Round your answers to nearest whole value.
Cost | $fill in the blank 4per unit |
Markup | $fill in the blank 5per unit |
Selling price | $fill in the blank 6per unit |
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