The Contribution Margin per unit (CM) can be calculated
from the difference of Selling Price per unit (SP) and Total Expenses per unit
(TE).
First, let’s calculate the value of SP:
SP = Sales / Units sold
SP = $1,043,400 / 22,200 units sold
SP = $47
Second, calculate all expenses:
Direct materials per unit = $234,948 / 27,970 units
manufactured = $8.4
Direct labor per unit = $131,459 / 27,970 units
manufactured = $4.7
Variable manufacturing overhead per unit = $240,542 / 27,970
units manufactured = $8.6
Variable selling expenses per unit = $113,220 / 22,200
units sold = $5.1
TE = $26.8
Therefore the CM is:
CM = SP – TE
CM = $47 - $26.8
CM = $20.2 per unit
Answer:
$5.70
Explanation:
The calculation of conversion costs for the month is given below:-
Units started to completed during the period = Units completed during the month - Units started during the month
= $104,000 - $16,400
= $87,600
So, to complete the started work in progress :-
The Conversion = $16,400 × (100% - 20%)
= $13,120
Units started to completed during the period $87,600
And, the ending work in progress
For Conversion = $13,400 × 30%
= $4,020
Therefore, the Equivalent production of units is
= $87,600 + $13,120 + $4,020
= $104,740
So, The cost of per per equivalent unit is
= Cost added during the period ÷ Equivalent units of production
= $597,123 ÷ $104,740
= $5.70
Answer:
Accounting profit = 120,000
Explanation:
Accounting profit = total revenue - explicit costs
Accounting profit = 72*10,000 - 60*10,000
= 720,000 - 600,000 = 120,000
Answer:
A. Cash 960
Service Revenue 960
Explanation:
In the given transaction, the trade discount is not shown in the recording of the journal entry but the effect is to be seen in the journal entry.
Since the cash is paid for providing the service and give the patient a 20% discount.
So, the discount amount would be equal to
= Service cost × discount rate
= $1,200 × 20%
= $240
And, the journal entry would be shown below:
Cash A/c Dr $960
To Service Revenue $960
(Being service is provided for cash and discount is given)