Question

Jacquie Inc. reports the following annual cost data for its single product. Normal production and sales level Sales price Direct materials Direct labor Variable overhead Fixed overhead 71,000 units $57.10 per unit $10.10 per unit 7.60 per unit $12.10 per unit $1,086,300 in total Complete the below table using absorption costing. (Round cost per unit answers to 2 decimal place.) Production volume Cost of goods solo: 71,000 units 102,000 units Cost of goods sold per unit Number of units sold Total cost of goods sold Jacquie Inc

Answer 1

Answers

Cost of Goods Sold:	71000 units	102000 units
Direct material per unit	$                   10.10	$                 10.10
Direct Labor per unit	$                     7.60	$                    7.60
Variable Overhead per unit	$                   12.10	$                 12.10
Fixed Overhead per unit	$                   15.30 [1086300/ 71000]	$                 10.65 [1086300 / 102000]
Cost of Goods Sold per unit	$                   45.10	$                 40.45
No. of units sold	71,000	71,000
Total Cost of Goods Sold	$          3,202,100	$         2,871,950

	Sales Volume
	71000 units	71000 units
Sales Revenue	$          4,054,100	$         4,054,100
Cost of Goods Sold	$          3,202,100	$         2,871,950
Gross Margin	$              852,000	$         1,182,150

No. of units sold	71,000
Change in Fixed Overhead cost per unit	$                     4.65 [15.30 – 10.65]
Change in Cost of Goods Sold	$              330,150