Question
XYZ Corporation is a manufacturing company that produces two types of products: A and B. The following information is available for the year ended December
XYZ Corporation is a manufacturing company that produces two types of products: A and B. The following information is available for the year ended December 31, 2022:
Product A
Units produced: 20,000
Direct materials cost per unit: $10
Direct labor cost per unit: $8
Variable overhead cost per unit: $4
Fixed overhead cost: $60,000
Selling price per unit: $40
Product B
Units produced: 10,000
Direct materials cost per unit: $12
Direct labor cost per unit: $10
Variable overhead cost per unit: $6
Fixed overhead cost: $40,000
Selling price per unit: $50
a) Calculate the total manufacturing cost for each product.
b) Calculate the total cost of goods sold for each product.
c) Calculate the gross profit for each product.
d) Calculate the gross profit percentage for each product.
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