Determine the product cost concept for cost amount

Assignment Help Accounting Basics
Reference no: EM13120605

Display Labs Inc recently began production of a new product, flat panel displays, which required the investment of $1,800,000 in assets. The costs of producing and selling 9000 units of flat panel displays are as follows: Variable cost per unit, direct materials $90, direct labor $20, Factory overhead $40, Selling and adminstration expenses $35 totalling $185. The fixed costs are Factory overhead $360,000, selling and administration exenses $180,000. Display Labs is currently considering establishing a selling price for flat panel displays. The president of display labs has decided to use cost-plus approach to product pricing and has indicated the displays must earn a 20% rate of return on invested assets. 1. Determine the product cost concept for cost amount per unit, markup percentages, selling price of flat panel displays. 2. using the total cost concept determine the cost per unit, markup percentage rounded to two decimal places and selling price rounded to nearest whole dollae. 3. using variable cost concept for the cost amount per unit, the markup percentage rounded two decimal places and selling price of flat panels 4. assune that as of august 1,2012 5000 units of flat panel displays has been produced and sold during the current year.analysis of domestic market indicates that 4000 additional units are expected to b sold during the remainder of the year at normal product price determined under product cost concept. On Aug 3, 2012 Display labs revieve an offer from Video systems for 1500 units if flat panel displays for $225 each. Video systems will market the units in canada under its own name brand and no selling and adminstative costs wer associated with thesale will be incurred by display labs. The additional business is not expected to affect the domestic sales of flatpanel displays and additional units could be produced using existing capacity.

Reference no: EM13120605

Questions Cloud

List possibilities for preference arrangements of customers : Four customers in succession come into the store to order stereos. The retailer is interested in their preferences. List the possibilities for preference arrangements among the four customers.
What is the probability that in a sample of 20 window frames : A manufacturer of window frames know from long experience that 5 percent of the production will have some type of minor defect tht will require an adjustment. What is the probability that in a sample of 20 window frames
Borrowing and compensating balance : Given your answer to part a and a stated interest rate of 9 percent on the total amount borrowed, what is the effective rate on $400,000 actually being used?
What is the composition of a vapor mixure : Methylbenzene and 1,2-dimethylbenzene mix to form an ideal solution. At 90oC, the vapor pressure of pure methylbenzene is 400 Torr and that of pure 1,2-dimethylbenzene is 150 Torr.
Determine the product cost concept for cost amount : Display Labs Inc recently began production of a new product, flat panel displays, which required the investment of $1,800,000 in assets.
Find out the magnitude of the centripetal force that acts : The skater farthest out has a mass of 58.0 kg and is 7.80 m from the pivot. He is skating at a speed of 6.40 m/s. Find out the magnitude of the centripetal force that acts on him.
How many passengers are on the cruises : What percent of the cruises will have 1,970 passengers or more? What percent of the cruises will have 1,600 or fewer passengers? How many passengers are on the cruises with the fewest 25 percent of passengers?
Determining measurements and conversions : Convert the height of the stack of pennies into meters. Calculate how many pennies would be needed to make a tower 1 billion meters tall. Give answer in both standard calculation and in scientific notation.
Social security benefits : Wilma is a widow, age 80 and blind, who is claimed as a dependent by her son. During 2010, she received $4,800 in Social Security benefits, $2,200 in bank interest, and $1,800 in cash dividends from stocks. Wilma's taxable income is:

Reviews

Write a Review

Accounting Basics Questions & Answers

  Example of business transaction

For each of the following items, give an example of a business transaction that has the described effect on the accounting equation:

  Estimated liability under warranties

During 2010, Markel had actual outlay of $48,000 for repairs under warranty. Markel employs the expense warranty accrual method-What amount should the company report for estimated liability under warranties at the end of 2010?

  Types of regulations requiring periodic reporting

What types of regulations requiring periodic reporting, both monetary and statistical, come along with the payroll function, and what are the reports required?

  Journal entry of purchase of long-term bonds

Karr Company purchased bonds with a face amount of $400,000 between interest payment dates. Karr purchased the bonds at 102, paid brokerage costs of $6,000, and paid accrued interest for three months of $10,000.

  Prepare journal entries to record the following transactions

Prepare journal entries to record the following transactions entered, answer the questions in accounting basics.

  Refunding of note payable

Make the entry to record the partial refunding. Assume Grant Co. makes reversing entries when appropriate. Prepare the adjusting entry at December 31, assuming straight-line amortization of the discount.

  Finding components of mixed overhead costs

Echeverria SA is an Argentinian manufacturing company whose total factory overhead costs fluctuate somewhat from year to year according to the number of machine-hours worked in its production facility.

  Annual rate of bonds

In the section on the yield to call, a bond pays annual interest of $80 and matures after ten years. The bond is valued at $1,147 if the comparable rate is 6 percent and the bond is held to maturity.

  Accounting databases to obtain relevant data

The use of accounting databases enables researchers to obtain data to help answer their questions more efficiently. Using the FASB Codification database and other sources such as the SEC Web site as guides, answer the following questions:

  Which approach do you think would result in more useful

How do the provisions of  SFAS No. 123(R)  differ from the bill introduced by members of Congress (Dreier and Eshoo), which would require expensing for options issued to only the top five officers in a company? Which approach do you think would res..

  Create an approach to tax research that results in credible

Using the Internet or Strayer databases, research the rules regarding the transfer of property and services to a corporation in exchange for stock. Include a review of the IRS to determine its level of interest and audits conducted related to this..

  What factors should be considered in making an estimate

What factors should be considered in making an estimate of the loss accrual? What information should management disclose in the footnotes to the financial statements concerning this purchase commitment?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd