Req a) Estimated Total Manufacturing Cost | ||||
Amount $ | Amount $ | Calculation | ||
Direct Material: | ||||
Begin Mat. Inv. | 0 | |||
Add:Purchases | 553400 | (12000*4 + 3000)*10 + 43400 | ||
Cost of Mat. Available | 553400 | |||
Less:End Mat. Inv. | 30000 | 3000*10 | ||
Total Mat. Used | 523400 | |||
less:Indirect Mat. | 43400 | |||
Direct Mat. Used | 480000 | |||
Direct Labor | 643200 | (12000*2*22)+(12000*0.6*16) | ||
Manufacturing Overhead: | ||||
Indirect Mat. | 43400 | |||
Building rent | 92920 | |||
Machinery rent | 57320 | |||
Other overheads | 466560 | |||
Total Manufacturing overhead | 660200 | |||
Total manufacturing costs | 1783400 | |||
Units produced | 12000 | |||
Product cost per unit, $ | 148.62 | |||
b) Estimated Income Statement: | ||||
Amount $ | ||||
Sales | 3212400 | |||
Less: COGS | 1486200 | COGS =10000*148.62 = 1486200 | ||
Gross Profit on sales | 1726200 | NOI = 800000*15% = 120000 | ||
Less:expenses: | Let sales be x, then | |||
Selling | 963720 | (1486200+(0.3x)+(0.2x)+120000=x | ||
Administration | 642480 | 0.5x = 1606200 | ||
Total expenses | 1606200 | Sales = x = 1606200/0.5 = 3212400 | ||
Net Operating Income | 120000 | |||
c) Unit sale price = Sales / Units sold = 3212400 / 10000 = $321.24 |
Total Manufacturing Cost, Income Statement, Unit Cost, and Selling Price Two inventors, recently organized as Innovation,...
Total Manufacturing Cost, Income Statement, Unit Cost, and Selling Price Two inventors, recently organized as Innovation, Inc., consult you regarding a planned new product.They have estimates of the costs of materials, labor, overhead, and other expenses for 2016 but need to know how much to charge for each unit to earn a profit in 2016 equal to 15% of their estimated total long-term investment of $480,000 (ignore income taxes). Their plans indicate that each unit of the new product requires...
Total Manufacturing Cost, Income Statement, Unit Cost, and Selling Price Two inventors, recently organized as Innovation, Inc., consult you regarding a planned new product.They have estimates of the costs of materials, labor, overhead, and other expenses for 2016 but need to know how much to charge for each unit to earn a profit in 2016 equal to 15% of their estimated total long-term investment of $640,000 (ignore income taxes). Their plans indicate that each unit of the new product requires...
Total Manufacturing Cost, Income Statement, Unit Cost, and Selling Price Two inventors, recently organized as Innovation, Inc., consult you regarding a planned new product.They have estimates of the costs of materials, labor, overhead, and other expenses for 2016 but need to know how much to charge for each unit to earn a profit in 2016 equal to 15% of their estimated total long-term investment of $720,000 (ignore income taxes). Their plans indicate that each unit of the new product requires...
Total Manufacturing Cost, Income Statement, Unit Cost, and Selling Price Two inventors, recently organized as Innovation, Inc., consult you regarding a planned new product.They have estimates of the costs of materials, labor, overhead, and other expenses for 2016 but need to know how much to charge for each unit to earn a profit in 2016 equal to 15% of their estimated total long-term investment of $600,000 (ignore income taxes). Their plans indicate that each unit of the new product requires...
Total Manufacturing Cost, Income Statement, Unit Cost, and Selling Price Two inventors, recently organized as Innovation, Inc., consult you regarding a planned new product.They have estimates of the costs of materials, labor, overhead, and other expenses for 2016 but need to know how much to charge for each unit to earn a profit in 2016 equal to 15% of their estimated total long-term investment of $560,000 (ignore income taxes). Their plans indicate that each unit of the new product requires...
Total Manufacturing Cost, Income Statement, Unit Cost, and Selling Price Two inventors, recently organized as Innovation, Inc., consult you regarding a planned new product.They have estimates of the costs of materials, labor, overhead, and other expenses for 2016 but need to know how much to charge for each unit to earn a profit in 2016 equal to 15% of their estimated total long-term investment of $480,000 (ignore income taxes). Their plans indicate that each unit of the new product requires...
Total Manufacturing Cost, Income Statement, Unit Cost, and Selling Price You are consulted by Investors, Inc., a group of investors planning a new product. They have estimates of the costs of materials, labor, overhead, and other expenses for 2016 but need to know how much to charge for each unit to earn a profit in 2016 equal to 10% of their estimated investment of $1,000,000 (ignore income taxes). Their plans indicate that each unit of the new product requires the...
Two inventors, recently organized as Innovation, Inc., consult you regarding a planned new product.They have estimates of the costs of materials, labor, overhead, and other expenses for 2016 but need to know how much to charge for each unit to earn a profit in 2016 equal to 15% of their estimated total long-term investment of $720,000 (ignore income taxes). Their plans indicate that each unit of the new product requires the following: Direct Material 4 lb. of a material costing...
Solutions are given, please show how they were calculated. Thank you! Problem 1 You are consulted by Inventors, Inc., a group of scientists who have designed a new product. They have estimates of the costs of materials, labor, overhead, and other expenses for 2018 but need to know how much to charge for each unit to earn a profit in 2018 equal to 15% of their estimated investment of $4,000,000 (ignore income taxes). Their plans indicate that each unit of...
Income Statement Lederman Manufacturing Corporation sold 30,000 units of product for $49 each dur year, 10,000 shares of common stock were outstanding. Prepare an income stateme (ignore income taxes). Lederman Manufacturing Corporation Schedule of Cost of Goods Manufactured and Sold For the Year Ended December 31,2016 Direct material: Beginning materials inventory Cost of materials purchased Cost of material available Less: Ending materials Inventory Total materials used Less: Indirect material used Direct materials used $50,000 250,000 300,000 30,000 270,000 24,000 246,000...