# 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.

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

65

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

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...

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Anonymous
Totally impressed with results!! :-)

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