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Category > Accounting Posted 22 May 2017 My Price 6.00

Computation of Unit Cost

Computation of Unit Cost

p3. Keep Cool Industries, Inc., manufactures fans for personal use. Department 70 is responsible for assembling the fan. Department 71 packages them for shipment. Keep Cool recently produced 10,000 fans for a national retailer. In fulfilling this order, the departments incurred the following costs:

Department

 

 

70

71

Direct materials used

$30,000

$4,000

Direct labor

8,000

2,000

Overhead

5,000

3,000

 

1.    Compute the unit cost for each department.

2.    Compute the total unit cost for the national retailer order.

3.    aCCounting ConneCtion ▶ The selling price for this order was $10 per unit. Was the selling price adequate? List the assumptions and/or computations upon which you based your answer. What suggestions would you make to Keep Cool’s management about the pricing of future orders?

4.    Compute the prime costs and conversion costs per unit for each department.

 

 

Answers

(8)
Status NEW Posted 22 May 2017 07:05 AM My Price 6.00

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Attachments

file 1495439596-Answer.docx preview (186 words )
C-----------omp-----------uta-----------tio-----------n o-----------f U-----------nit----------- Co-----------st ----------- p3-----------. -----------Kee-----------p C-----------ool----------- In-----------dus-----------tri-----------es,----------- In-----------c.,----------- ma-----------nuf-----------act-----------ure-----------s f-----------ans----------- fo-----------r p-----------ers-----------ona-----------l u-----------se.----------- De-----------par-----------tme-----------nt -----------70 -----------is -----------res-----------pon-----------sib-----------le -----------for----------- as-----------sem-----------bli-----------ng -----------the----------- fa-----------n. -----------Dep-----------art-----------men-----------t 7-----------1 p-----------ack-----------age-----------s t-----------hem----------- fo-----------r s-----------hip-----------men-----------t. -----------Kee-----------p C-----------ool----------- re-----------cen-----------tly----------- pr-----------odu-----------ced----------- 10-----------,00-----------0 f-----------ans----------- fo-----------r a----------- na-----------tio-----------nal----------- re-----------tai-----------ler-----------. I-----------n f-----------ulf-----------ill-----------ing----------- th-----------is -----------ord-----------er,----------- th-----------e d-----------epa-----------rtm-----------ent-----------s i-----------ncu-----------rre-----------d t-----------he -----------fol-----------low-----------ing----------- co-----------sts-----------: -----------Dep-----------art-----------men-----------t -----------  -----------  ----------- 70----------- 71----------- D-----------ire-----------ct -----------mat-----------eri-----------als----------- us-----------ed -----------$30-----------,00-----------0 $-----------4,0-----------00 ----------- Di-----------rec-----------t l-----------abo-----------r 8-----------,00-----------0 2-----------,00-----------0 -----------Ove-----------rhe-----------ad -----------5,0-----------00
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