1.)Variable cost per unit is budgeted to be $4.00 and fixed cost per unit is bud

Question

1.)Variable cost per unit is budgeted to be $4.00 and fixed cost per unit is budgeted to be $3.00 in a period when $4,000 units are produced. If production is actually 6,500 units, what is the expected total cost of the units produced? 2.)Mannys Metallic has the following costs in a period when production is $1,000 units: Direct material,$7,000; direct labor,$10,000;depreciation, $800;rent,$2,000 and other fixed costs,$5,000. If production changes to 2000 units, how much will be the total costs? 3.)For the year ended Decemeber 31,2007, the Ruby Company had a cost of goods sold of $975,000 and cost of goods manfactured of $900,000. If the December 31,2007 Finished Good balance was 150000, what was January 1, 2007 balance in the Finished Good Inventory account?

Explanation / Answer

1)total cost=total fixed cost+total variable cost=6500(3+4)=$6500*7=$45500 2)total cost=800+5000+2000+800+7*2000+10*2000=$$24600 3)balance in the Finished Good Inventory account=900,000+150,000-975,000=$75000

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