West Coast Toast, Inc. manufactures and sells toaster ovens. Last month, the company produced and sold...

 

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West Coast Toast, Inc. manufactures and sells toaster ovens. Last month, the company produced and sold 10,000 units at a price of $75 each. Related information appears below: Item Wages for administrative staff Total Cost $18,000 Utilities for factory 28,000 Rent on factory and equipment 86,000 Circuits and wires 46,000 Product delivery costs 28,000 Salary for factory manager 8,200 Advertising (fixed) 14,000 Salaries for office staff 96,000 106,000 183,000 Metal, plastic and rubber Wages for factory assembly staff Required: a. Identify all costs above as either a product cost (specifically DM, DL or OH) or a period cost (PC). b. The company uses the cost-plus approach to pricing and wants to achieve an approximate profit of 30 percent. Did it meet its profit objective last month? Briefly explain. Regardless, what two specific actions would you recommend to improve its profitability? C. If the company had only sold 7,000 units last month, what dollar amount would it report for cost of goods sold as well as ending inventory in its financial statements? Round your final answer to the nearest dollar. d. Identify all costs as either a variable cost (VC) or a fixed cost (FC) then calculate the variable cost per unit (rounded to the nearest penny) assuming 10,000 units were produced and sold as well as the total fixed costs. What is the break-even point (rounded to the nearest whole unit)? West Coast Toast, Inc. manufactures and sells toaster ovens. Last month, the company produced and sold 10,000 units at a price of $75 each. Related information appears below: Item Wages for administrative staff Total Cost $18,000 Utilities for factory 28,000 Rent on factory and equipment 86,000 Circuits and wires 46,000 Product delivery costs 28,000 Salary for factory manager 8,200 Advertising (fixed) 14,000 Salaries for office staff 96,000 106,000 183,000 Metal, plastic and rubber Wages for factory assembly staff Required: a. Identify all costs above as either a product cost (specifically DM, DL or OH) or a period cost (PC). b. The company uses the cost-plus approach to pricing and wants to achieve an approximate profit of 30 percent. Did it meet its profit objective last month? Briefly explain. Regardless, what two specific actions would you recommend to improve its profitability? C. If the company had only sold 7,000 units last month, what dollar amount would it report for cost of goods sold as well as ending inventory in its financial statements? Round your final answer to the nearest dollar. d. Identify all costs as either a variable cost (VC) or a fixed cost (FC) then calculate the variable cost per unit (rounded to the nearest penny) assuming 10,000 units were produced and sold as well as the total fixed costs. What is the break-even point (rounded to the nearest whole unit)?

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a Identifying costs as either product costs specifically direct materials direct labor or overhead or period costs Product Costs 1 Circuits and wires ... View the full answer