Accounting Fill in the Blanks
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See attached file for a full problem description. Concepts covered include total cost, variable cost, and product cost.
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Solution Summary
The attached word document contains calculations of markup percent using total cost, variable cost, and product cost.
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Please see the attached file.
4) INSTRUCTIONS: Solve the following problems and record the answers in the Answers column.
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0. The opportunity cost of investing $100,000 (in fixed assets) that is currently invested in U.S. Treasury Bills earning 6.5% is
$6,500
0. ____
1-4. Watkins Co. has the following costs for Product M:
Variable costs:
Direct materials $ 6.00 per unit
Direct labor 2.50
Factory overhead 1.50
Selling and administrative expenses 2.00
Total $12.00 per unit
Fixed costs:
Factory overhead $79,600
Selling and administrative expenses 40,000
Watkins desires a profit equal to a 20% rate of return on assets. $800,000 of assets are devoted to producing Product M, and 50,000 units are expected to be produced and sold.
1. Calculate the markup percentage, using the total cost concept 22.23%
1. ____
2. Calculate the markup percentage, using the variable cost concept 46.6%
2. ____
3. Calculate the markup percentage, using the product cost concept 51.75%
3. ____
4. The selling price, using the variable cost concept, is $ 17.60
4. ____
5-6. Massey Printing Co. makes Products S, T, and U. All three products are processed through a common ...
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