Ask Question
10 December, 09:10

Imperial jewelers manufactures and sells a gold bracelet for $189.95. the company's accounting system says that the unit product cost for this bracelet is $149.00 as shown below:

+2
Answers (1)
  1. 10 December, 12:46
    0
    Total Marginal Cost of each bracelet is:

    Direct materials. $84.00

    Add: Direct labor $45.00

    Add: Variable Portion. $4.00

    Add: Additional Filigree

    Materials. $2.00

    Total. $135.00 per bracelet

    Sales Price - Marginal Cost = $169.95 - $135.00 = $34.95 per bracelet

    Total price of 20 bracelet = $18.95 * 20

    = $699.00

    Total Operating Income before accounting for the special tool that cost, $250.00

    = $699.00 - $250.00

    Total operating income = $449.00

    Note that the remaining fixed maintenance overhead ($16) was not subtracted because manufacturing costs represent only the expenses necessary to make the product unlike production cost.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Imperial jewelers manufactures and sells a gold bracelet for $189.95. the company's accounting system says that the unit product cost for ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers