Problem 5-4 (Part Level Submission) Uli Steel produces high-quality worktables.
ID: 2541380 • Letter: P
Question
Problem 5-4 (Part Level Submission) Uli Steel produces high-quality worktables. The company has been in operation for 3 years, and sales have declined each year due to increased competition. The 2017 10,000 0,000 10,000 6,900 26,900 $112 2018 9,000 019 Units sold Units produced Fixed production costs Variable production costs per unit Selling price per unit Fixed selling and 7,900 26,900 310,000 $310,000 $310,000 $112 $343 $343 $343 304,300 $304,300 $304,300 $112 (a) Calculate profit and the value of ending inventory for each year under full costing. (Round cost per unit to 2 decimal places, e.g. 15.25 and final answers to o decimal places, e.g. 125.) 2017 2018 2019 Net profit Ending inventoryExplanation / Answer
Solution (a)
Calculation of Net Profit
Particulars
2017 ($)
2018 ($)
2019 ($)
Units sold
10,000
10,000
6,900
Sales
3,430,000
3,087,000
2,709,700
Less: Variable production cost @ 112 per unit
(1,120,000)
(1,008,000)
(884,800)
Less: Fixed production cost
(310,000)
(310,000)
(310,000)
Gross Profit
2,000,000
1,769,000
1,514,900
Less: Fixed selling and administrative expense
(304,300)
(304,300)
(304,300)
Net Profit
1,695,700
1,464,700
1,210,600
Calculation of Ending Inventory
Particulars
2017
2018
2019
Units produced
10,000
10,000
6,900
Units sold
10,000
9,000
7,900
Ending inventory units
NIL
1,000
NIL
Variable production cost @ 112 per unit
112,000
Ending Inventory value = $ 112,000
Particulars
2017 ($)
2018 ($)
2019 ($)
Units sold
10,000
10,000
6,900
Sales
3,430,000
3,087,000
2,709,700
Less: Variable production cost @ 112 per unit
(1,120,000)
(1,008,000)
(884,800)
Less: Fixed production cost
(310,000)
(310,000)
(310,000)
Gross Profit
2,000,000
1,769,000
1,514,900
Less: Fixed selling and administrative expense
(304,300)
(304,300)
(304,300)
Net Profit
1,695,700
1,464,700
1,210,600
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.