Homework Chapter 19 Homework Save Score 0 of 1 pt 3 of 5 3 c

Homework: Chapter 19 Homework Save Score: 0 of 1 pt 3 of 5 (3 complete) HW Score: 20%, 1 of 5 pts P19-35A (similar to) Question Help Prescott, Inc. manufactures bookcases and uses an activity-based costing system. Prescott\'s activity areas and related data follow: (Click the icon to view the activity areas and related data.) Prescott produced two styles of bookcases in October the standard bookcase and an unfinished bookcase, which has fewer parts and requires no finishing. The totals for quantities, direct materials costs, and other data follow EEE (Click the icon to view the totals for quantities, direct materials costs, and other data.) Read the requirements Requirement 1. Compute the manufacturing product cost per unit of each type of bookcase. (Enter a \"O\" for any zero-balances.) Standard Bookcase Unfinished Bookcase 77000 66000 16500 75000 90000 20000 Direct materials Direct labor Materials handling Assembling Finishing Total manufacturing cost Number of units Manufacturing cost per unit

Solution

Answer 1. Standard Bookcase Unfinished Bookcase Direct Materials                75,000.00            77,000.00 Direct Labor                90,000.00            66,000.00 Indirect Manufacturing Costs: Material Handling                40,000.00            33,000.00 Assembling              127,500.00            93,500.00 Finishing                12,500.00            13,750.00 Total Manufacturing Costs              345,000.00          283,250.00 Number of Units                   5,000.00               5,500.00 Manufacturing Cost per Unit                         69.00                     51.50 Material Handling: Standard Bookcase - $2 X 20,000 parts                40,000.00 Unfinished Bookcase - $2 X 16,500 parts                33,000.00 Assembling: Standard Bookcase - $17 X 7,500 DLH              127,500.00 Unfinished Bookcase - $17 X 5,500 DLH                93,500.00 Finishing Standard Bookcase - $2.50 X 5,000 Units                12,500.00 Unfinished Bookcase - $2.50 X 5,500 Units                13,750.00 Answer 2. Standard Bookcase Unfinished Bookcase Pre-manufacturing Activities                           5.00                       2.00 Manufacturing Product Costs                         69.00                     51.50 Pre-manufacturing Activities                         21.00                     18.00 Full Product Cost per Unit                         95.00                     71.50 Answer 3. Manufacturing Product costs are reported in the financial statements. Managers use full product costs for decision making like pricing and product emphasis. Full product costs include the costs of pre-manufacturing and post-manufacturing activities that are expensed as incurred for external reporting. However, these costs often are assigned to products for internal decisions. Answer 4. Full Product Cost per Unit - Unfinished Bookcase                         71.50 Profit Margin                         19.00 Sales Price per Unit                         90.50