Columbia Products produced and sold 900 units of the company's only product in March. You have collected the following information from the accounting records Sales price (per unit)
Manufacturing costs $ 448
Fixed overhead 50,400
Direct labor (per unit) 35
Direct materials (per unit) 112
Variable overhead (per unit) 70 (for the month)
Marketing and administrative costs
Fixed costs (for the month) 67,500
Variable costs (per unit) 14
Required:
Compute the following:____
1. Variable manufacturing cost per unit $217
2. Full cost per unit
3. Variable cost per unit
4. Full absorption cost per unit.
5. Prime cost per unit.
6, Conversion cost per unit.
7. Profit margin per unit
8. Contribution margin per unit
9. Gross margin per unit

Answers

Answer 1
Answer:

Answer:

Results are below.

Explanation:

Giving the following information:

Units produced and sold= 900

Sales price (per unit) $448

Manufacturing costs:

Fixed overhead 50,400

Direct labor (per unit) 35

Direct materials (per unit) 112

Variable overhead (per unit) 70 (for the month)

Marketing and administrative costs:

Fixed costs (for the month) 67,500

Variable costs (per unit) 14

a. Variable manufacturing cost= 35 + 112 + 70= $217

b. Total cost:

Total variable cost= (217 + 14)*900= 207,900

Total fixed cost= 50,400 + 67,500= 117,900

Total cost= $325,800

Total cost per unit= 325,800/900= $362

c. Total variable cost= 217 + 14= $231

d. The absorption costing method includes all costs related to production, both fixed and variable.

Absorption cost= 217 + (50,400/900)= $273

e. Prime cost= direct material + direct labor

Prime cost= 112 + 35= $147

f. Conversion cost= direct labor + unitary variable overhead

Conversion cost= 35 + 70= $105

g. Profit margin= selling price - total unitary cost

Profit margin= 448 - 362= $86

h. Contribution margin per unit= selling price - total unitary variable cost

Contribution margin per unit= 448 - 231= $217

j. Gross margin per unit= Selling price - absorption cost per unit

Gross margin per unit= 448 - 273= $175

Answer 2
Answer:

Final answer:

The computations show that Columbia Products incurs a loss per unit sold and that manufacturing costs and overheads figure significantly into the total cost per unit. The company needs to increase sales price or decrease costs to attain a positive profit margin.

Explanation:

Here's how to calculate the required costs:

  1. Variable manufacturing cost per unit is already given as $217.
  2. Full cost per unit is the sum of all costs, both fixed and variable, divided by the number of units - ($50,400 + $67,500 + 900 * ($217 + $14)) / 900 = $490.
  3. Variable cost per unit includes both manufacturing cost and marketing/administrative cost - $217 + $14 = $231.
  4. Full absorption cost per unit considers all manufacturing costs - both variable and fixed - so ($50,400 + 900 * $217) / 900 = $364.
  5. The Prime cost per unit is the sum of direct labor and direct materials - $35 + $112 = $147.
  6. Conversion cost per unit is direct labor plus variable overhead - $35 + $70 = $105.
  7. The Profit margin per unit is sales price per unit minus all costs per unit - $448 - $490 = -$42, which indicates a loss rather than a profit.
  8. Contribution margin per unit is sales price per unit minus variable costs per unit - $448 - $231 = $217.
  9. Gross margin per unit is sales price per unit minus variable manufacturing cost per unit - $448 - $217 = $231.

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Answers

Answer:

$125

Explanation:

Computation for the change in net working capital

Using this formula

Change in net working capital =( Ending Current asset- Ending Current liabilities) - (Beginning Current asset- Beginning Current liabilities)

Let plug in the formula

Change in net working capital =

($493 – $272) – ($328 – $232)

Change in net working capital = $221-$96

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Answers

Answer: The answer is as follows:

Explanation:

Price of basket in year one = $8

Price of basket in year two = $7

So, from year one to year two there is a fall in the price level which means that there is deflation in the economy at an annual rate of :

(P_(2) -P _(1))/(P_(1) ) * 100

= (7 - 8)/(8) * 100

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Hence, this example illustrates that, as the price level falls, the value of money increases.

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Answers

Answer:

yes it is

Explanation:

there´s always the premise, that you have to separate your personal of your work life, so is totally reasonable that you have always to show respect to your coworkers because it helps to get better synergies between each other

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Answers

Answer:

The amount of dividend is $20,000.

Explanation:

Calculate the dividend on common stock using the equation as follows:

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Answers

Answer:

Dr Cash 105,600

Dr Compensation Expense 14,400

Cr Common Stock 10,000

Cr Paid-In Capital – Excess of Par 110,000

Explanation:

KL Corp Journal entry

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Dr Compensation Expense 14,400 (10,000*12*12%)

Cr Common Stock 10,000 (10,000*1)

Cr Paid-In Capital – Excess of Par 110,000

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Answers

Answer:

6.517%

Explanation:

Present Value PV = $14,320

Future Value FV = $18,434

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