My question relates to Part A. I know the answer is 25 (20 + 4 + 1), but my question is... why is sales commission (a variable cost) not included in the inventoriable cost per unit? Please explain. Thank you!!
Homework Answers
a. Inventorial Cost using Variable Costing = Direct Materials + Direct Labor + Variable Manufacturing Cost = $ 20 + $ 4 + $ 1 = $ 25
b. Inventorial Cost using Absorption Costing = Direct Materials + Direct Labor + Variable Manufacturing Cost + Fixed Manufacturing Costs = $ 20 + $ 4 + $ 1 + $ 750,000 / 100,000 = $ 32.50
Sales and Administrative Expenses are period expenses, not to be included in inventoriable cost.
Achilles Auto makes and sells batteries. In 2017, it made 100,000 batteries and sold 75,000 of...
Achilles Auto makes and sells batteries. In 2017, it made 100,000 batteries and sold 75,000 of them, at an average selling price of $60 per unit. The following additional information relates to Achilles Auto for 2017: Direct materials $20.00 per unit Direct manufacturing labour $ 4.00 per unit Variable manufacturing costs $1.00 per unit Sales commissions 5 5.00 per part Fored manufacturing costs $ 750.000 per year Administrative expenses, all find $ 270,000 per year What is Achilles Auto's inventoriable...
Question 4: Inventory Valuation Suggested time: 15 minutes Athabasca Auto makes and sell auto batteries. In...
Question 4: Inventory Valuation Suggested time: 15 minutes Athabasca Auto makes and sell auto batteries. In 2019 it made 120,000 batteries and sold 95,000 of them, at an average selling price of $480 per unit. The following additional information relates to Athabasca Auto for 2019: Direct Materials $160.00 per unit Direct manufacturing labour $32.00 per unit Variable manufacturing costs $64.00 per unit Sales commissions $48.00 per part Fixed manufacturing costs $1,750,000 per year Fixed administrative expenses $670,000 per year What...
Question 4: Inventory Valuation Suggested time: 15 minutes MAP One makes maple syrup in Canada. In...
Question 4: Inventory Valuation Suggested time: 15 minutes MAP One makes maple syrup in Canada. In 2019 it made 220,000 400gr bottle of syrups and sold 190,000 of them, at an average selling price of $25 per unit. The following additional information relates to Athabasca Auto for 2019: Direct Materials $10.00 per unit Direct manufacturing labour $2.00 per unit Variable manufacturing costs $4.00 per unit Sales commissions $3.00 per unit Fixed manufacturing costs $750,000 per year Fixed administrative expenses $270,000...
MAP One makes maple syrup in Canada. In 2019 it made 220,000 400gr bottle of syrups...
MAP One makes maple syrup in Canada. In 2019 it made 220,000 400gr bottle of syrups and sold 190,000 of them, at an average selling price of $25 per unit. The following additional information relates to Athabasca Auto for 2019: Direct Materials $10.00 per unit Direct manufacturing labour $2.00 per unit Variable manufacturing costs $4.00 per unit Sales commissions $3.00 per part Fixed manufacturing costs $750,000 per year Fixed administrative expenses $270,000 per year What is Athabasca Auto manufacturing cost...
Question 4: Inventory Valuation Suggested time: 15 minutes Athabasca Auto makes and sell auto batteries. In...
Question 4: Inventory Valuation Suggested time: 15 minutes Athabasca Auto makes and sell auto batteries. In 2019 it made 120,000 batteries and sold 95,000 of them, at an average selling price of $480 per unit. The following additional information relates to Athabasca Auto for 2019 Direct Materials Direct manufacturing labour Variable manufacturing costs Sales commissions Fixed manufacturing costs Fixed administrative expenses S160.00 per unit $32.00 per unit $64.00 per unit $48.00 per part $1,750,000 per year 5670,000 per year What...
Help >> 11 View Av A Question 4: Inventory Valuation Suggested time: 15 minutes Athabasca Auto...
Help >> 11 View Av A Question 4: Inventory Valuation Suggested time: 15 minutes Athabasca Auto makes and sell auto batteries. In 2019 it made 120.000 batteries and sold 95.000 of them at an average selling price of S480 per unit. The following additional information relates to Athabasca Auto for 2019: I Direct Materials S160.00 per unit Direct manufacturing labour S32.00 per unit Variable manufacturing costs S64.00 per unit Sales commissions S48.00 per part Fixed manufacturing costs S1.750,000 per year...
Athabasen Auto makes and sell auto batteries. In 2019 it made 120.000 batteries and sold 95.000...
Athabasen Auto makes and sell auto batteries. In 2019 it made 120.000 batteries and sold 95.000 of them, at an average selling price of $480 per unit. The following additional information relates to Athabasca Auto for 2019: Direct Materials Direct manufacturing labour Variable manufacturing costs Sales commissions Fixed manufacturing costs Fixed administrative expenses $160.00 per unit $32.00 per unit $64.00 per unit $48.00 per part $1,750,000 per year $670,000 per year What is Athabasca Auto manufacturing cost per unit using:...
with this question, I guessed but i don't know where it comes from 2012 2013 2014...
with this question, I guessed
but i don't know where it comes from
2012 2013 2014 Unit Data Beginning Inventory 0 ? ? Production 800 700 80 Sales 200 800 40 variable costs manufacturing cost per unit produced $900 $900 $900 marketing cost per unit sold produced $600 $600 $600 Fixed costs Manufacturing costs $450,000 $450,000 $450,000 Marketing costs $140,000 $140,000 $140,000 Using variable or direct costing, how much inventoriable cost is assigned to each unit produced in 2012? Correct!...
Speedy Motors assembles and sells motor vehicles and uses standard costing. Actual data and variable costing...
Speedy Motors assembles and sells motor vehicles and uses standard costing. Actual data and variable costing and absorption costing income statements relating to April and May 2017 are as follows: The variable manufacturing costs per unit of Speedy Motors are as follows: E. (Click the icon to view the variable manufacturing costs per unit.) 450 April May Unit data: Beginning inventory 50 Production Sales 475 Variable costs: Manufacturing cost per unit produced $ 9,500 $ 9,500 Operating (marketing) cost per...
managerial accounting MAP One makes maple syrup in Canada. In 2019 it made 220,000 400gr bottle...
managerial accounting
MAP One makes maple syrup in Canada. In 2019 it made 220,000
400gr bottle of syrups and sold 190,000 of them, at an average
selling price of $25 per unit. The following additional information
relates to Athabasca Auto for 2019:
Direct Materials
$10.00 per unit
Direct manufacturing labour
$2.00 per unit
Variable manufacturing costs
$4.00 per unit
Sales commissions
$3.00 per part
Fixed manufacturing costs
$750,000 per year
Fixed administrative expenses
$270,000 per year
What is Athabasca Auto...
Achilles Auto makes and sells batteries. In 2017, it made 100,000 batteries and sold 75,000 of them, at an average selling price of $60 per unit. The following additional information relates to Achilles Auto for 2017: Direct materials $20.00 per unit Direct manufacturing labour $ 4.00 per unit Variable manufacturing costs $1.00 per unit Sales commissions 5 5.00 per part Fored manufacturing costs $ 750.000 per year Administrative expenses, all find $ 270,000 per year What is Achilles Auto's inventoriable...
Question 4: Inventory Valuation Suggested time: 15 minutes Athabasca Auto makes and sell auto batteries. In 2019 it made 120,000 batteries and sold 95,000 of them, at an average selling price of $480 per unit. The following additional information relates to Athabasca Auto for 2019 Direct Materials Direct manufacturing labour Variable manufacturing costs Sales commissions Fixed manufacturing costs Fixed administrative expenses S160.00 per unit $32.00 per unit $64.00 per unit $48.00 per part $1,750,000 per year 5670,000 per year What...
Help >> 11 View Av A Question 4: Inventory Valuation Suggested time: 15 minutes Athabasca Auto makes and sell auto batteries. In 2019 it made 120.000 batteries and sold 95.000 of them at an average selling price of S480 per unit. The following additional information relates to Athabasca Auto for 2019: I Direct Materials S160.00 per unit Direct manufacturing labour S32.00 per unit Variable manufacturing costs S64.00 per unit Sales commissions S48.00 per part Fixed manufacturing costs S1.750,000 per year...
Athabasen Auto makes and sell auto batteries. In 2019 it made 120.000 batteries and sold 95.000 of them, at an average selling price of $480 per unit. The following additional information relates to Athabasca Auto for 2019: Direct Materials Direct manufacturing labour Variable manufacturing costs Sales commissions Fixed manufacturing costs Fixed administrative expenses $160.00 per unit $32.00 per unit $64.00 per unit $48.00 per part $1,750,000 per year $670,000 per year What is Athabasca Auto manufacturing cost per unit using:...
with this question, I guessed
but i don't know where it comes from
2012 2013 2014 Unit Data Beginning Inventory 0 ? ? Production 800 700 80 Sales 200 800 40 variable costs manufacturing cost per unit produced $900 $900 $900 marketing cost per unit sold produced $600 $600 $600 Fixed costs Manufacturing costs $450,000 $450,000 $450,000 Marketing costs $140,000 $140,000 $140,000 Using variable or direct costing, how much inventoriable cost is assigned to each unit produced in 2012? Correct!...
Speedy Motors assembles and sells motor vehicles and uses standard costing. Actual data and variable costing and absorption costing income statements relating to April and May 2017 are as follows: The variable manufacturing costs per unit of Speedy Motors are as follows: E. (Click the icon to view the variable manufacturing costs per unit.) 450 April May Unit data: Beginning inventory 50 Production Sales 475 Variable costs: Manufacturing cost per unit produced $ 9,500 $ 9,500 Operating (marketing) cost per...
managerial accounting
MAP One makes maple syrup in Canada. In 2019 it made 220,000
400gr bottle of syrups and sold 190,000 of them, at an average
selling price of $25 per unit. The following additional information
relates to Athabasca Auto for 2019:
Direct Materials
$10.00 per unit
Direct manufacturing labour
$2.00 per unit
Variable manufacturing costs
$4.00 per unit
Sales commissions
$3.00 per part
Fixed manufacturing costs
$750,000 per year
Fixed administrative expenses
$270,000 per year
What is Athabasca Auto...
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