Answer:
Gross margin= $744,760
Explanation:
<u>The absorption costing method includes all costs related to production, both fixed and variable.</u> The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
Unitary fixed overhead= 52,900 / 21,500= $2.46
Total unitary production cost= 10.3 + 12.3 + 3.3 + 2.46= $28.36
<u>Now, the gross margin:</u>
Gross margin= sales - COGS
Gross margin= 21,500*63 - 21,500*(28.36)
Gross margin= $744,760
Answer:
1.Dr Cash 25,000
Cr Sales revenue 25,000
2. Dr Warranty expense 2,500
Cr Warranty liability 2,500
3.Journal entry for actual warranty expense
Dr Warranty liability 500
Cr Cash 500
Explanation:
Preparation of Dynamo's journal entries related to the sales and warranty in Year 1.
1.Dr Cash 25,000
Cr Sales revenue 25,000
(50*500)
2. Dr Warranty expense 2,500
Cr Warranty liability 2,500
3. Dr Warranty liability 500
Cr Cash 500
Answer:
Material cost per unit = $3.64
Conversion cost per unit = $4.59
Manufacturing cost per unit = $8.23
Explanation:
1. Calculate the unit cost for materials:
Material cost per unit = 
Material cost per unit = $3.64
2. Calculate the unit cost for conversion costs:
Conversion cost per unit = 
Conversion cost per unit = 4.59
3. Calculate the total manufacturing costs:
Manufacturing cost per unit = Material cost per unit + Conversion cost per unit
Manufacturing cost per unit = $3.64 + $4.59
Manufacturing cost per unit = $8.23
This would be C. the Real Estate Agents. The engineering firms are only in charge of the construction of the home and the materials that are to be used for building it. The Architects, on the other hand, are responsible for the design of the home and the placement of the materials of the home. The lending institutions are focused more on providing the home inspector with money that he will need for a piece of property. So that leaves us with the Real Estate Agents. It is these people who deal with the sales of property which is why they are the source of business leads.
Answer:
B. Target costing forces design engineers to explicitly consider the costs of manufacturing and other aspects of business that traditionally fall outside the engineering department
Explanation:
Target costing needs the design engineers to be active in meeting their customers projection, but it must be inside the target cost requirements. Engineers can not afford to just have their attention on the function and form of design, they must also observe cost under Target costing.
