I have attached a word document with three questions. thank-you.

I have attached a word document with three questions. thank-you.

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1.
Which of the following best describes the term “relevant range”.
a)
The relevant range refers to the range of fixed cost present in an organization.
b)
The relevant range pertains to a single unit of
product
c)
The relevant range is the range of output over which cost assumptions are valid.
d)
The relevant range is the same for all products a company may produce.
2.
You must
Show All Your Work
.
ABC Company, which began operations on January 1 of the current year, produces office chairs
that sells for $320 per unit. Information related to the current year’s activities follows:
Number of units Produced
10,000
Number of units sold
9,000
Variable cost per unit:
Direct materials
$80
Direct Labor
20
Variable Manufacturing
Overhead
10
Annual Fixed costs:
Fixed Manufacturing
Overhead
$300,00
0
Fixed Selling and
Administrative costs
$200,00
0
ABC Company carries its finished-goods inventory at the average unit cost of production. There
was no work in process at year-end.
Required: Calculate the following
(Make sure you show your work).
A. Compute the company’s average unit cost of production.
B. Determine the cost of the December 31 finished-goods inventory.
C. Compute the company’s cost of goods sold.
D. Compute the operating income.
3.
Why are actual cost systems rare in practice?
a)
It is difficult to obtain actual cost information for prime costs.
b)
It is difficult to obtain actual cost information for conversion costs.
c)
Prime costs cannot easily be assigned to products and services.
d)
Accurate cost information cannot be obtained on a timely basis.

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