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3 years ago

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A company produces a single product. Variable production costs are $12.90 per unit and variable selling and administrative expen

ses are $3.90 per unit. Fixed manufacturing overhead totals $45,000 and fixed selling and administration expenses total $49,000. Assuming a beginning inventory of zero, production of 4,900 units and sales of 4,050 units, the dollar value of the ending inventory under variable costing would be:

1 answer:

Scrat [10]3 years ago

6 0

Answer:

$10,965

Explanation:

Computation for the dollar value of the ending inventory under variable costing

First step is to find the Units in ending inventory

Using this formula

Units in ending inventory = Units in beginning inventory + Units produced−Units sold

Let plug in the formula

Units in ending inventory= 0 units + 4,900 units−4,050 units

Units in ending inventory = 850 units

Last step is to find the Value of ending inventory under variable costing

Using this formula

Value of ending inventory under variable costing = Unit in ending inventory × Variable production cost

Let plug in the formula

Value of ending inventory under variable costing= 850 units × $12.90 per unit

Value of ending inventory under variable costing = $10,965

Therefore the dollar value of the ending inventory under variable costing would be $10,965

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3 years ago

Elizabeth Kennedy sells beauty supplies. Her annual demand for a particular skin sparkle is 17,000 units. The cost of placing an

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Answer:

The minimum cost will be "$214085".

Explanation:

$D = 1700 units \\\\S = \$ 50 \\\\H= 20%\\$

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ii) When quantity = 1501 -10,000, price = $ 12.45 , and holding price is $12.45 * 20 %= $2.49.

iii) When quantity = 10,0001- and more, price = $ 12.40 , and holding price is $12.40 * 20 %= $2.48.

$EOQ= \sqrt{\frac{2DS}{H}} \\\\EOQ1= \sqrt{\frac{2\times 17000\times 50}{2.50}} \\\\EOQ1=824.62 \ \ \ or \ \ \ 825\\$

$EOQ2= \sqrt{\frac{2\times 17000\times 50}{2.49}} \\\\EOQ1=826.2T \ \ \ or \ \ \ 826\\$

$EOQ3= \sqrt{\frac{2\times 17000\times 50}{2.48}} \\\\EOQ3=827.93 \ \ \ or \ \ \ 828\\$

know we should calculate the total cost of EOQ1 and break ever points (1501 to 10,000)units

$total \ cost = odering \ cost + holding \ cost + \ Annual \ product \ cost\\\\total_c = \frac{D}{Q} \times S + \frac{Q}{2} \times H + (p \times D) \\\\T_c = \frac{17000}{825} \times 50+ \frac{825}{2} \times 2.50 + (12.50 \times 17000)\\\\T_c = 1030 .30 +1031.25+212500\\\\T_c =$ 214561.55\\\\$

$T_c = \frac{17000}{1501} \times 50+ \frac{1501}{2} \times 2.49 + (12.45 \times 17000)\\\\T_c = 566.28 +1868.74+211650\\\\T_c =$ 214085.02 \ \ \ or \ \ \ $ 214085\\\\$

$T_c = \frac{17000}{10001} \times 50+ \frac{10001}{2} \times 2.48 + (12.40 \times 17000)\\\\T_c = 84.99+ 12401.24+210800\\\\T_c =$ 223286.23 \\$

The total cost is less then 15001. So, optimal order quantity is 1501, that's why cost is = $214085.

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3 years ago

Bob makes his first $ 800 deposit into an IRA earning 7.4 % compounded annually on his 24th birthday and his last $ 800 deposit

Likurg_2 [28]

Answer:The answer is $17,387.67

Explanation:

Let Principal = P, Rate = R% per annum, Time = n years

Amount = P ( 1 + R/100)∧n

P = $800, R = 7.4%, n = 24

A = 800 ( 1 + 7.4/100)∧24

A = 800 ( 1 + 0.074)∧24

A = 800 ( 1 .074)∧24

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A = 800× 5.5475569512

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Deposit made at 39th birthday

P = $800, R = 7.4%, n = 39

A = 800 ( 1 + 7.4/100)∧39

A = 800 (1 + 0.074)∧39

A = 800 (1.074)∧39

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A = 800× 16.187022604

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How much is in the IRA when Bob retires will be

$4,438.05 + 12,949.62

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3 years ago

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Answer

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Explanation:

<em>A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost. </em>

<em>Also note that all cost incurred up to the split-off point (the cost of crushing) are irrelevant to the decision to process further . </em>

<em> $</em>

Sales revenue after the split off point( 64+64) 128

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Additional sales revenue 65

Further processing cost ( 15+19) <u>(34 )</u>

<em>Net income after further processing 31</em>

Financial advantage from further processing $31

4 0

3 years ago

Read 2 more answers