Cost Accounting

Anonymous
timer Asked: Apr 8th, 2018
account_balance_wallet $30

Question description

10 questions for final exam on Cost Accounting. This one is upper level work for any accounting major. It should not be overwhelming.

Tutor Answer

FrankRose23
School: University of Maryland

See the attached document for the solutions. In case of more work on your finals you can always get back to me.

Question 1
a) Gross margin = sales – cost of goods sold
Cost of goods sold = cost per unit × total units sold
Cost per unit will be calculated as follows:
Direct materials

24

Direct labor

29

Variable manufacturing overhead

65

Fixed manufacturing overhead

15

Cost per unit

$133

Gross margin per unit = $175 - $133 =$42
Total gross margin = $42 × 25000 units = $1,050,000
b) Contribution margin per unit = selling price – variable cost per unit
Selling price
Less: Direct materials

$175
24

Direct labor

29

Variable manufacturing overhead

65

Contribution margin

$57

Total contribution margin = $57 × 25000 units = $1,425,000

c) Operating profit under absorption costing
Sales Revenue

4,375,000

Less; Cost of goods sold
Direct materials

600,000

Direct labor

725,000

Variable manufacturi...

flag Report DMCA
Review

Anonymous
Totally impressed with results!! :-)

Similar Questions
Hot Questions
Related Tags

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors