A firm charges $25 for a product. If the markup is 25 percent, then the fully allocated average cost of the product is $20.
The term "markup" describes the discrepancy between an item's cost and its selling price. In other words, the vendor makes money by charging a premium over the overall cost of the commodity or service.
A business should realise the importance of markup. For instance, developing a sound pricing strategy is one of the most crucial resources a successful company can have. A product or service's markup needs to be high enough to cover all costs and turn a profit.
Retail price = $25
Markup =25% =0.25
Retail price = Average cost of product * (1+Markup)
25 = Average cost of product *1.25
Average cost of product =25/1.25
Average cost of product = $20
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Answer:
A.Direct material 5,320
Direct labour 1,700
Manufacturing overhead 2,550
B. Total cost 9,570
Unit cost 6.38
C. Dr Finished goods inventory account 9,570
Cr Work in Process inventory account 9,570
Explanation:
A. Calculation for the predetemined manufacturing overhead rate
Date Direct material Direct Labour Manufacturing Overhead
5/10 1,330
12 1,120
15 550 825 825
22 480 720 720
24 1,000
27 1,870
31 670 1,005
Total 5,320 1,700 2,550
B. Calculation for the total cost and the unit cost of the completed job
Cost of Completed job :
Direct material 5,320
Direct Labour 1,700
Manufacturing Overhead 2,550
Total Cost 9,570
Unit Cost = Total Cost / Number of units
Unit cost = 9,570/1,500
Unit cost = 6.38
C.Therefore when a job is fully completed, thebFinished goods inventory account will be
debited with the correspondent credit of Work in progress account.
Journal entry
May.31
Dr Finished goods inventory account 9,570
Cr Work in Process inventory account 9,570
Answer:
Explanation:
Salaries R&D $540,000
Depreciation on equipment 145,000
Utilities incurred 7,000
Payment for development work 13,000
R&D expense 705,000
*Paten filing and related legal costs are recorded to patent intangible asset account
Angela could have easily done to prevent this problem from occurring
is that she should double check the “To” and “Cc”, in which this will allow her
to confirm whether the message that she sent was particularly send to the
specific person and not to be sent to all of the people on her contacts.
Answer:
The correct word for the blank space is: individual.
Explanation:
<em>Good business practices</em> rely on the morale of each individual involved. The way people conduct businesses individually will affect the market of their operations, and that market, to the economy of the region. In the <em>globalized world</em>, we leave in, depending on the impact of the region, its market behavior can represent an advantage or disadvantage to the worldwide economy. In front of a crisis, the government can take a stand to control the situation through different policies.
