S5-13 Find unit cost and gross profit on a final product (Learning Objective 5) Counter Co. produces Formica countertops in two sequential production departments: Forming and Polishing. The Polishing Department calculated the following costs per equivalent unit (square feet) on its October production cost report: Transferred-in $2.44 Direct Materials Conversion Costs $0.40 $1.66 Cost per equivalent unit: During October, 165,000 square feet were completed and transferred out of the Polishing Department to Finished Goods Inventory. The countertops were subsequently sold for $13.00 per square foot. 1. What was the cost per square foot of the finished product? 2. Did most of the production cost occur in the Forming Department or in the Polishing Department? Explain how you can tell where the most production cost occurred. 3. What was the gross profit per square foot? 4. What was the total gross profit on the countertops produced in October?

S5-13 Find unit cost and gross profit on a final product (Learning Objective 5) Counter Co. produces Formica countertops in two sequential production departments: Forming and Polishing. The Polishing Department calculated the following costs per equivalent unit (square feet) on its October production cost report: Transferred-in $2.44 Direct Materials Conversion Costs $0.40 $1.66 Cost per equivalent unit: During October, 165,000 square feet were completed and transferred out of the Polishing Department to Finished Goods Inventory. The countertops were subsequently sold for $13.00 per square foot. 1. What was the cost per square foot of the finished product? 2. Did most of the production cost occur in the Forming Department or in the Polishing Department? Explain how you can tell where the most production cost occurred. 3. What was the gross profit per square foot? 4. What was the total gross profit on the countertops produced in October?

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Description: S5-13 Find unit cost and gross profit on a final product (Learning Objective 5)Counter Co. produces Formica countertops in two sequential production departments:Forming and Polishing. The Polishing Department calculated the following costs perequiva

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 23E: Bordner Company manufactures HVAC (heating, ventilation, and air conditioning) systems for...

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