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Bess [88]
3 years ago
13

QS 19-10 Computing contribution margin LO P2 D’Souza Company sold 6,000 units of its product at a price of $88.00 per unit. Tota

l variable cost is $51.60 per unit, consisting of $40.80 in variable production cost and $10.80 in variable selling and administrative cost. Compute the contribution margin for this company.
Business
1 answer:
Nikitich [7]3 years ago
4 0

Answer:

$218,400

Explanation:

The computation of contribution margin is here below:-

                                               Units       Cost per unit         Total

Sales                                     6,000        $88                       $528,000

Less:

Variable production cost     6,000        $40.8                  $244,800

Variable selling and

administrative costs        6,000         $10.8                   $64,800

Contribution margin                                                           $218,400

Therefore the we multiplied the sale unit with cost per unit, in the similar way we multiplied the Variable production cost unit with cost per unit and Variable selling and administrative costs with cost per unit to reach the contribution margin.

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The goldfarb company manufactures and sells toasters. each toaster sells for $23.75 and the variable cost per unit is $16.25. go
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We calculate first for the revenue of the selling 8,000 units of toasters by multiplying 8,000 with the selling price per unit. 

<span>                                Revenue = (8,000)($23.75/unit) = $190,000</span>

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<span>                                Variable cost = (8,000)($16.25/unit) = $130,000</span>

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An analysis of the accounts of Roberts Company reveals the following manufacturing cost data for the month ended June 30, 2017 I
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Answer:

<u>Cost of goods manufactured schedule for the month ended June 30, 2017</u>

Raw Materials                                                 $46,720

Direct Labor                                                     $51,740

Manufacturing Overhead :

Indirect labor                                                     $6,510

Factory insurance                                            $4,700

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Factory utilities                                                 $3,740

Miscellaneous factory costs                            $1,980

Add Opening Work in process Inventory      $5,670

Less Closing Work in process Inventory       ($7,610)

Cost of goods manufactured                       $119,820

Explanation:

Cost of goods manufactured schedule is a summary of manufacturing costs for the production period.

<u>Determination of Raw Materials In Production</u>

Raw Materials T - Account

<u>Debit :</u>

Opening Balance                                     $9,180

Purchases                                              $55,020

Totals                                                     $64,200

<u>Credit :</u>

Work In Process (Balancing figure)       $46,720

Closing Balance                                      $17,480

Totals                                                      $64,200

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