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julia-pushkina [17]
4 years ago
14

A company sells each unit of its product for $ 107. The final department showed the following costs per equivalent​ unit: $ 48 ​

transferred-in, $ 23 direct​ materials, $ 12 conversion. What is the gross profit on each unit sold by the​ company?
Business
1 answer:
Arte-miy333 [17]4 years ago
3 0

Answer:

$24

Explanation:

Gross profit is the net return from the selling price of the product less all the manufacturing cost associated with that product. These cost included material and conversion cost of all the departments working on the product.

Conversion cost is the some of all the manufacturing cost except the material cost, in other work all the cost incurred to convert the raw material to a finished product is called conversion costs.  

Selling Price of the product = $107

Costs:

Material                      $23

Conversion cost        $12

Cost Transferred In   <u>$48</u>

Total Cost                               <u> $83</u>

Gross profit                              $24

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A company manufactures three products, A, B, and C. The following information is available about the products on a per unit basi
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Answer:

Hi the demand for each  product for this question is missing, however, i have provided step by step approach to solving the problem below .

Explanation:

First Calculate the contribution per unit of each product

                                                        A                           B                            C

Sales price                                  $65.50                $57.50                  $75.25

Less Total variable cost            ($28.85)              ($26.50)                ($38.95 )

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Calculate the contribution per limiting factor of each product and rank the products

<em>contribution per limiting factor = contribution per unit ÷ quantity per limiting factor per unit</em>

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Allocate the limiting factor according to the limiting factor

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Contribution =  $25.40

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