Jarvis Company Uses the Total Cost Concept of Applying the Cost-Plus

Question

Examlex · Accepted Answer

The Answer is (a) $63,000 ($450,000 *14%)
(b) Total costs: Variable ($8.00 * 35,000 units) $280,000 Fixed ($50,000 + $20,000) 70,000 Total $350,000 Cost amount per unit: $350,000/35,000 units $ 10.00
(c) (a) $63,000 ($450,000 *14%) (b) Total costs: Variable ($8.00 * 35,000 units) $280,000 Fixed ($50,000 + $20,000) 70,000 Total $350,000 Cost amount per unit: $350,000/35,000 units $ 10.00 (c) (d) Cost amount per unit $10.00 Markup ($10.00 * 18%) 1.80 Selling price $11.80

(a) $63,000 ($450,000 *14%) (b) Total costs: Variable ($8.00 * 35,000 units) $280,000 Fixed ($50,000 + $20,000) 70,000 Total $350,000 Cost amount per unit: $350,000/35,000 units $ 10.00 (c) (d) Cost amount per unit $10.00 Markup ($10.00 * 18%) 1.80 Selling price $11.80

(d) Cost amount per unit $10.00 Markup ($10.00 * 18%) 1.80 Selling price $11.80

Jarvis Company Uses the Total Cost Concept of Applying the Cost-Plus

Definitions: