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Product cost method of product costing

MyPhone, Inc. uses the product cost method of applying the cost$-$plus approach to product pricing. The costs of producing and selling $5,260$ cell phones are as follows:

Variable costs per unit:

Line Item Description Amount

Direct materials $$78$

Direct labor $36$

Factory overhead $23$

Selling and administrative expenses $18$

Total variable cost per unit $$155$

Fixed costs:

Line Item Description Amount

Factory overhead $$199,600$

Selling and administrative expenses $69,700$

MyPhone desires a profit equal to a $13\%$ return on invested assets of $$599,300.$

a$.$ Determine the amount of desired profit from the production and sale of $5,260$ cell phones.

fill in the blank $1$ of $1$$

$77,909$

b$.$ Determine the product cost per unit for the production of $5,260$ cell phones. Round your answer to the nearest whole dollar.

fill in the blank $1$ of $1$$

$269,300$

per unit

c$.$ Determine the product cost markup percentage for cell phones. Round your answer to two decimal places.

$377\mathrm{.}69$

$\%$

d$.$ Determine the selling price of cell phones. Round your answers to the nearest whole dollar.

Line Item Description Amount

Total Cost $fill in the blank $4$

$206$

per unit

Markup fill in the blank $5$

$777\mathrm{.}61$

per unit

Selling price $fill in the blank $6$

$984$

per unitProduct cost method of product costing

MyPhone, Inc. uses the product cost method of applying the cost$-$plus approach to product pricing. The costs of producing and selling $5,260$ cell phones are as follows:

Fixed costs:

Factory overhead $$199,600$

Selling and administrative expenses $69,700$

MyPhone desires a profit equal to a $13\%$ return on invested assets of $$599,300.$

a$.$ Determine the amount of desired profit from the production and sale of $5,260$ cell phones.

b$.$ Determine the product cost per unit for the production of $5,260$ cell phones. Round your answer to the nearest whole dollar.

$$,x$ per unit

c$.$ Determine the product cost markup percentage for cell phones. Round your answer to two decimal places.

$x\%$

d$.$ Determine the selling price of cell phones. Round your answers to the nearest whole dollar.

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