Department J had no work in process at the beginning of the period. 18,000 units were completed during the period, and 2,000 uni
ts were 30% completed at the end of the period. The following manufacturing costs were debited to the departmental work in process account during the period (assume the company uses FIFO and rounds cost per unit to two decimal places): Direct materials (20,000 at $5) $100,000 Direct labor 142,300 Factory overhead 57,200 Assuming that all direct materials are placed in process at the beginning of production, what is the total cost of the departmental work in process inventory at the end of the period
1 answer:
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Answer:
Selling Price per unit = $287.5 per unit
Explanation:
Provided quantum of sales = 10,000 units
Cost statement for 10,000 units
Direct material = $100 10,000 = $1,000,000
Direct Labor = $30 10,000 = $300,000
Variable Overhead = $45 10,000 = $450,000
Fixed Overhead Costs = $635,000
Fixed Selling and administrative Cost = $115,000
Total = $2,500,000
Add: Profit mark up 15% = $375,000
Total Selling Value = $2,875,000
Selling Price per unit = $2,875,000/10,000 = $287.5 per unit
Answer:
The correct options are as follows
Buyers will pay all of the tax.
The price of Humbugs will rise to $60.
The quantity of Humbugs demanded will not change.
Explanation:
As the question is not complete, the complete question is found online and is attached herewith.
The options given are as follows
Sellers will pay all of the tax.
Buyers will pay all of the tax.
The price of Humbugs will rise to $60.
The price of Humbugs will rise by less than $10.
The quantity of Humbugs demanded will not change.
Now option 1 is not correct as the buyer has to pay the tax not the seller.
option 2 is correct
option 3 is correct
option 4 is not correct as the initial price is $50 and the new price is to be more than $60 thus the rise is more than $10.
option 5 is correct as the demand of the hamburger will remain the same.
