Question
XXX Company sells products Laptop, Desktop and Tablet. In 2020 the unit sales price, variable costs, and sales mix of these products were: Required (1)
XXX Company sells products Laptop, Desktop and Tablet. In 2020 the unit sales price, variable costs, and sales mix of these products were:
Required
(1) Compute Jasmine's break even sales (units) in 2020. Prove your answer
(2) Calculate the sales required to earn a target profit $ 5,600,000 and prove your answer
Question 2
XXX Products uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool.
KPN allocates manufacturing overhead costs using direct labour hours as the basis. Austin provides the following information: The direct cost details for Job No. 450 are as follows:
Information
Estimated Costs for 2015 ($)
Total Overheads for the company for the year 2020 has been estimated as below:
Manufacturing overhead costs 540,000
The total number of direct labour hours estimated to be used by the company for the year 2020 will be 27,000 hours. Direct labour hours to be used for Job No. 450 will be 8000 hours.
Required
Compute the total cost of Job 250 using normal costing
Question 3
Backwoods Incorporated manufactures rustic furniture. The cost accounting system estimates manufacturing costs to be $200 per table, consisting of 70% variable costs and 30% fixed costs. The company has surplus capacity available. It is Backwoods' policy to add a 50% markup to full costs.
What is the lowest price per unit Backwoods should bid on this long-term order, if company follows cost plus pricing (i.e. full cost + mark-up)?
Question 4
Lata Chemicals Company wants to launch a new product (L2) in the market. The product is still in final stages of design. The company expects 25% margin on selling price. The current market price of the similar product is $ 1800. The production cost of this product (L2) currently comes around $ 1500 per unit.
Required: Calculate the reduction required in cost to meet the target cost per unit
Question 5
Ron Chemicals produces four products from a joint process costing $300,000 per month. After leaving the joint process, the products must be further refined before they are salable. You have been provided with the following information:
1. Allocate the joint costs using the physical units' method.
2. Allocate the joint costs using the net realizable value method.
Products Laptop Desktop Tablet Sales Mix Ratio 2 2 1 Selling price per unit $ 1800 $ 1400 $ 1000 Variable Cost per unit $ 1200 $ 1000 Forecast unit sales (units) 8000 units 8000 units $ 200 4000 units Fixed Cost $ 9,000,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started