Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following data apply to the provision of psychological testing services: Sales price per unit (1 unit = 1 test plus feedback to client) $

The following data apply to the provision of psychological testing services:

Sales price per unit (1 unit = 1 test plus feedback to client) $ 350
Fixed costs (per month):
Selling and administration 20,000
Production overhead (e.g., rent of testing facilities) 15,000
Variable costs (per test):
Labor for oversight and feedback 145
Outsourced test analysis 21
Materials used in testing 5
Production overhead 13
Selling and administration (e.g., scheduling and billing) 10
Number of tests per month 2,000 tests

Required:Calculate the amount for each of the following (one unit = one test) if the number of tests is 2,000 per month. Also calculate if the number of tests decreases to 1,250 per month.

The following data apply to the provision of psychological testing services:

2,000 Tests 1,250 Tests
a. Variable production cost per unit.
b. Variable cost per unit.
c. Full cost per unit.
d. Full absorption cost per unit.
e. Prime cost per unit.
f. Conversion cost per unit.
g. Contribution margin per unit.
h. Gross margin per unit.

2. The following balances are from the accounts of Tappan Parts:

January 1 (Beginning) December 31 (Ending)
Direct materials inventory $ 22,000 $ 24,500
Work-in-process inventory 32,800 29,400
Finished goods inventory 5,500 7,200

Direct materials used during the year amount to $45,900 and the cost of goods sold for the year was $53,100.

Required:

Prepare a cost of goods sold statement.

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

Performance Audit Department Of Highways Preconstruction And Construction Activities

Authors: Montana. Legislature. Office Of The Legi

1st Edition

1175365823, 978-1175365828

More Books

Students also viewed these Accounting questions