Joe Coffee Cup Manufacturing Company has provided you the following information

Question

Joe Coffee Cup Manufacturing Company has provided you the following information for the past three months. As a new company, month one was their first month of production (ie. They had zero inventory at the beginning of the month). Manufacturing capacity is 50,000 units per month and is the upper level of the relevant range for all costs listed below. They use a first in-first out inventory system. Sale price per insulated coffee cup is $10 USD.

Month One: Units produced 20,000, Units sold 10,000

Month Two: Units produced 10,000, Units sold 15,000

Month Three: Units produced 10,000, units sold 10,000

Variable Cost per unit:

Direct materials $3.75

Direct labor $1.25

Variable manufacturing overhead 1.00

Variable selling & administrative 1.50

Fixed Costs:

Fixed manufacturing overhead $20,000

Fixed selling & administrative $10,000

Explanation / Answer

hey lad......increase the points....you gave a really big question and just give 300 points....no one is going to answer that

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