acct 525 managerial accounting average product cost per bookcase solution 494368

ACCT 525 Managerial Accounting

Heritage Company manufactures a beautiful bookcase that enjoys widespread popularity. The company has a backlog of orders that is large enough to keep production going indefinitely at the plant’s full capacity of 4,200 bookcases per year. Annual cost data at full capacity follow

Required:

Enter the dollar amount of each cost item under the appropriate headings. Note that each cost item is classified in two ways: first, as either variable or fixed with respect to the number of units produced and sold; and second, as either a selling and administrative cost or a product cost. (If the item is a product cost, it should also be classified as either direct or indirect.) (Leave no cells blank – be certain to enter “0” wherever required. Omit the “$” sign in your response.)

Direct materials used (wood and glass)

$ 432,000

Administrative office salaries

$ 108,000

Factory supervision

$ 70,000

Sales commissions

$ 63,000

Depreciation, factory building

$ 108,000

Depreciation, administrative office equipment

$ 2,000

Indirect materials, factory

$ 16,000

Factory labor (cutting and assembly)

$ 88,000

Advertising

$ 96,000

Insurance, factory

$ 7,000

Administrative office supplies (billing)

$ 5,000

Property taxes, factory

$ 22,000

Utilities, factory

$ 49,000

Cost Item Variable Fixed (Selling or admin costs ) direct indirect

Direct materials used (wood, glass)

Administrative office salaries

Factory supervision

Sales commissions

Depreciation, factory building

Depreciation, admin. Office equipment

Indirect materials, factory

Factory labor (cutting and assembly)

Advertising

Insurance, factory

Administrative office supplies (billing)

Property taxes, factory

Utilities, factory

Total costs

2.

Compute the average product cost per bookcase. (Round your answer to the nearest dollar amount. Omit the “$” sign in your response.)

Average product cost $ per bookcase ?

Attachments:

3.docx