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ACCT321 Cost Accounting

Question

Answered

Task:

Consider the following information for Smith Company for the prior year:

1 The company produced 1,950 units and sold 1,800 units, both as budgeted.

2 There were no beginning or ending work-in-process inventories and no beginning finished goods inventor tA

3 Budgeted and actual fixed costs were equal, all variable manufacturing costs were affected by productior) volume only, and all variable selling costs were affected by sales volume only.

4 Budgeted per unit revenues and costs were as follows:

Per unit Sales price 105.00 Direct materials 35.00

Direct labor 22.00 Other variable manufacturing costs 12.00

Fixed selling costs 6.00 Variable selling costs 13.00 Fixed manufacturing costs ($3,600 total) 2.00

Fixed administrative costs ($2,700 total) 1.50

ACCT321 Cost Accounting

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