Question: a. The total conversion cost for the month was: b. The total prime cost was: c. The total product cost was: d. Total expenses: 2.

a. The total conversion cost for the month was:

b. The total prime cost was:

c. The total product cost was:

d. Total expenses:

2. The Old Towne Manufacturing Company produces the following three products:

1-Jul-2020

31-Jul-2020

Work in process

19,000

20,000

Raw materials

24,000

29,000

Finished goods

55,000

30,000

Other data:

Direct labor cost

55,000

Factory overhead cost

82,000

Selling expenses

19,000

Raw materials purchases

58,000

Administrative expenses

42,000


Saws

Knives

Measuring Tapes

Selling Price per unit

$40

$16

$50

Variable Cost per unit

28

12

30

Contribution per unit

12

4

20

Fixed Costs are $76,000 per year

50% of all sales in units are Saws, 30 percent are Knives, and 20 percent are Measuring Tapes

a. What is the breakeven point in total units? Round off to the nearest whole number

b. Number of saws that will be sold to breakeven?

c. Total sales in units to obtain a before-tax profit of $19,000? Round off to the nearest whole number.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Old Towne Manufacturing Company Cost Analysis and Breakeven Point 1 Cost Analysis a Total Conversion Cost Conversion cost includes direct labor and fa... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!