Then, Operating profit = Sales revenue Cost of goods sold Selling, general, and – – administrative costs = Sales revenue Full costs – $55,200 = $414,000 Full costs – Full = $414,000 $55,200 = $358,800 — Full costs = Units sold x Full cost per unit $358,800 = sold x $39.00 Units sold = $358,800 ÷ $39.00 = 9,200 units sold d. Sales revenue = Selling price per unit x Units sold $414,000 = Selling price per unit x 9,200 units sold Selling price per unit = $414,000 ÷ 9,200 = $45.00 e. Finished goods ending (units) = Finished goods beginning (units) + Units produced Units sold – 400 = + Units produced 9,200 — Units produced = 9,200 + 400 = 9,600 f. Direct labor cost incurred = Direct-labor hours worked x Wage rate per hour Direct cost incurred = Units produced x Direct labor cost per unit = 9,600 x $6.25 = $60,000 $60,000 = Direct-labor hours worked x $20.00 Direct-labor hours worked = $60,000 ÷ $20.00 = 3,000 direct-labor hours Solutions to Integrative Case (30 min.) Analyze the Impact of a Decision on Income Statements:
Then, Operating profit = Sales revenue – Cost of goods sold – Selling, general, and administrative costs = Sales revenue – Full costs $55,200 = $414,000 – Full costs Full = $414,000 — $55,200 = $358,800 Full costs = Units sold x Full cost per unit $358,800 = sold x $39.00 Units sold = $358,800 ÷ $39.00 = 9,200 units sold d. Sales revenue = Selling price per unit x Units sold $414,000 = Selling price per unit x 9,200 units sold Selling price per unit = $414,000 ÷ 9,200 = $45.00 e. Finished goods ending (units) = Finished goods beginning (units) + Units produced – Units sold 400 = + Units produced — 9,200 Units produced = 9,200 + 400 = 9,600 f. Direct labor cost incurred = Direct-labor hours worked x Wage rate per hour Direct cost incurred = Units produced x Direct labor cost per unit = 9,600 x $6.25 = $60,000 $60,000 = Direct-labor hours worked x $20.00 Direct-labor hours worked = $60,000 ÷ $20.00 = 3,000 direct-labor hours Solutions to Integrative Case (30 min.) Analyze the Impact of a Decision on Income Statements:
solution-manual-fundamentals-of-cost-accounting-4th-edition-lanen.docx