Question

Product Cost Method of Product Pricing La Femme Accessories Inc. produces women's handbags. The cost of...

  1. Product Cost Method of Product Pricing

    La Femme Accessories Inc. produces women's handbags. The cost of producing 1,300 handbags is as follows:

    Direct materials $14,800
    Direct labor 7,000
    Factory overhead 6,200
    Total manufacturing cost $28,000

    The selling and administrative expenses are $28,000. The management desires a profit equal to 15% of invested assets of $504,000.

    If required, round your answers to nearest whole number.

    a. Determine the amount of desired profit from the production and sale of 1,300 handbags.
    $

    b. Determine the product cost per unit for the production of 1,300 handbags.
    $per unit

    c. Determine the product cost markup percentage for handbags.
    %

    d. Determine the selling price of handbags. Round your answers to nearest whole value.

    Cost $per unit
    Markup $per unit
    Selling price $per unit
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
a. Desired profit = Desired profit rate * Invested assets = 15% * 504000 75600
b. Product cost per unit = Total manufacturing cost / Units produced = 28000 / 1300 22 per unit
c. Product cost markup percentage = ( Desired profit + Selling and administrative expenses ) / Total manufacturing cost = ( 75600 + 28000 ) / 28000 370%
d. Cost 22 Per unit
Markup ( 22 * 370% ) 81 Per unit
Selling price 103 Per unit i
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
La Femme Accessories Inc. produces women's handbags. The cost of producing 1,200 handbags is as follows:...
La Femme Accessories Inc. produces women's handbags. The cost of producing 1,200 handbags is as follows: Direct materials $16,700 Direct labor 7,200 Factory overhead 6,000 Total manufacturing cost $29,900 The selling and administrative expenses are $26,800. The management wants a profit equal to 17% of invested assets of $502,000. If required, round your answers to nearest whole number. a. Determine the amount of desired profit from the production and sale of 1,200 handbags. If required, round your answers to nearest...
Smart Stream Inc. uses the product cost method of applying the cost-plus approach to product pricing....
Smart Stream Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $150 Factory overhead $350,000 Direct labor 25 Selling and administrative expenses 140,000 Factory overhead 40 Selling and administrative expenses 25 Total variable cost per unit $240 Smart Stream desires a profit equal to a 30% return on invested assets of $1,200,000. a. Determine the...
#6 Product Cost Method of Product Costing Voice Com, Inc., uses the product cost method of...
#6 Product Cost Method of Product Costing Voice Com, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 4,970 units of cell phones are as follows: Variable costs: Fixed costs: Direct materials $60 per unit Factory overhead $198,500 Direct labor 37 Selling and admin. exp. 71,000 Factory overhead 22 Selling and admin. exp. 21 Total variable cost per unit $140 per unit Voice Com desires a profit equal to...
Product Cost Method of Product Costing Voice Com, Inc., uses the product cost method of applying...
Product Cost Method of Product Costing Voice Com, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 4,750 units of cell phones are as follows: Variable costs: Fixed costs: Direct materials $83 per unit Factory overhead $199,100 Direct labor 35 Selling and admin. exp. 68,400 Factory overhead 26 Selling and admin. exp. 22 Total variable cost per unit $166 per unit Voice Com desires a profit equal to a...
Product Cost Method of Product Costing Voice Com, Inc., uses the product cost method of applying...
Product Cost Method of Product Costing Voice Com, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 4,890 units of cell phones are as follows: Variable costs: Fixed costs: Direct materials $71 per unit Factory overhead $201,300 Direct labor 40 Selling and admin. exp. 71,600 Factory overhead 25 Selling and admin. exp. 18 Total variable cost per unit $154 per unit Voice Com desires a profit equal to a...
Product Cost Concept of Product Pricing Willis Products Inc. uses the product cost concept of applying...
Product Cost Concept of Product Pricing Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 3,000 units of medical tablets are as follows: Variable costs per unit: Fixed costs: Direct materials $114 Factory overhead $120,000 Direct labor 42 Selling and admin. exp. 39,000 Factory overhead 35 Selling and admin. exp. 29 Total $220 Willis Products desires a profit equal to a 20% rate of return on invested...
Product Cost Concept of Product Pricing Willis Products Inc. uses the product cost concept of applying...
Product Cost Concept of Product Pricing Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 3,000 units of medical tablets are as follows: Variable costs per unit: Fixed costs: Direct materials $114 Factory overhead $120,000 Direct labor 42 Selling and admin. exp. 39,000 Factory overhead 35 Selling and admin. exp. 29 Total $220 Willis Products desires a profit equal to a 20% rate of return on invested...
Please show work Product Cost Method of Product Costing MyPhone, Inc., uses the product cost method...
Please show work Product Cost Method of Product Costing MyPhone, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,190 units of cell phones are as follows: Variable costs: Fixed costs: Direct materials $64 per unit Factory overhead $200,900 Direct labor 39 Selling and admin. exp. 70,600 Factory overhead 28 Selling and admin. exp. 18 Total variable cost per unit $149 per unit MyPhone desires a profit equal to...
Product Cost Method of Product Costing Voice Com, Inc., uses the product cost method of applying...
Product Cost Method of Product Costing Voice Com, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,250 units of cell phones are as follows: Variable costs: Fixed costs: Direct materials $89 per unit Factory overhead $200,400 Direct labor 30 Selling and admin. exp. 70,800 Factory overhead 26 Selling and admin. exp. 20 Total variable cost per unit $165 per unit Voice Com desires a profit equal to a...
Variable Cost Method of Product Pricing Smart Stream Inc. uses the variable cost method of applying...
Variable Cost Method of Product Pricing Smart Stream Inc. uses the variable cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $150 Factory overhead $350,000 Direct labor 25 Selling and admin. exp. 140,000 Factory overhead 40 Selling and administrative expenses 25 Total variable cost per unit $240 Smart Stream desires a profit equal to a 30% return on invested...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT