Answer:
$79,600
Explanation:
Calculation for what the total amount of direct manufacturing cost incurred will be :
Direct material $50,400
(8,000 x $6.30)
Add Direct labor $29,200
(8,000 x $3.65)
Total Direct cost $79,600
Therefore the total amount of direct manufacturing cost incurred is closest to: $76,600
Answer:
A. At the current level of production, the firm is making a profit of $3,000.
Explanation:
Units produced at first scenario 1500
Units produced at second scenario 2000
$3.5 average cost
$4 marginal cost
$5 marginal revenue x 2000 units=$10.000
(-) $3.5 x 2000 units =$7.000
_____________________________________
Profit =$3000
Missing information:
How much is the value of full costing ending inventory?
Answer:
$8,750
Explanation:
1,000 units were produced and 800 were sold, so ending inventory = 200 units
total production cost per unit (under full costing) = $35,000 / 800 = $43.75
ending inventory = $43.75 x 200 = $8,750
Full costing basically refers to absorption costing, which calculates COGS using both variable and fixed costs (total production costs).
