Maurice Tutor

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Category > Accounting Posted 20 Aug 2017 My Price 7.00

La Femme Accessories Inc

Product cost concept of product pricing

La Femme Accessories Inc. produces women’s handbags. The cost of producing 800 handbags is as  follows:

 

 

 

Direct materials

$18,000

Direct labor

8,500

Factory overhead

     5,500

Total manufacturing cost

$32,000

 
 

 

 

 

 

The selling and administrative expenses are $17,000. The management desires a profit equal to 22% of invested assets of   $250,000.

a.     Determine the amount of desired profit from the production and sale of 800 handbags.

b.     Determine the product cost per unit for the production of 800 handbags.

c.     Determine the product cost markup percentage for handbags.

d.     Determine the selling price of handbags.

Answers

Maurice Tutor
(5)
Status NEW Posted 20 Aug 2017 09:08 AM My Price 7.00

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