I want know my answer for requirement 3 and 4 is right or not? And how to calcul
ID: 2334514 • Letter: I
Question
I want know my answer for requirement 3 and 4 is right or not? And how to calculateit if it is wrong?
Various cost and sales data for Meriwell Company for the just completed year appear in the worksheet below $21,900 $41,100 $108,500 $104,400 $126,400 $9,020 $5,830 $71,000 $16,500 $31,500 $516,000 $79,100 Finished goods inventory, beginning Finished goods inventory, ending Administrative expenses Manufacturing overhead Purchases of raw materials Raw materials inventory, beginning Raw materials inventory. ending Direct labor Work in process inventory, beginning Work in process inventory ending Sales Selling expenses Of the $104,400 of manufacturing overhead, $13,900 is variable and $90,500 is fixedExplanation / Answer
Answer to Requirement 3.
Direct Material Cost per Unit = Total Direct Material Cost / Units Produced
Direct Material Cost per Unit = 129,590 / 10,000
Direct Material Cost per Unit = $12.96
Fixed Manufacturing Cost per Unit = Total Fixed Manufacturing Cost / Units Produced
Fixed Manufacturing Cost per Unit = 90,500 / 10,000
Fixed Manufacturing Cost per Unit = $9.05
Answer to Requirement 4.
Direct Material Cost per Unit = $12.96 (Remains Unchanged)
Total Direct Material Cost for 15,000 Units = $12.96 * 15,000
Total Direct Material Cost for 15,000 Units = $194,400
Fixed Manufacturing Cost per Unit = 90,500 / 15,000 (Change with No. of Units produced)
Fixed Manufacturing Cost per Unit = $6.03
Total Fixed Manufacturing Overhead Cost = $6.03 * 15,000
Total Fixed Manufacturing Overhead Cost = $90,500
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