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ashly138 ashly138
wrote...
Posts: 686
Rep: 6 0
6 years ago
A wholesale automobile company that buys and resells cars has the following data for June:
      Actual   
   Units bought   2,600   
   Units sold   2,500   

Cost   Assignment   Actual $   
Total cost of sales   # of units sold   30,000,000   
Buyers' expenses   # of units bought   162,000   
Cleaning of sold units   Cleaning dept.   150,000   
Customer relations   Sales support   244,000   
Rent on showroom    # of units bought   20,000   
Sales staff commissions   # of units sold   300,000   
Utilities   Sales support   3,500   

Required:
a.   Compute the costing rates for each cost driver using actual costing.
b.   Calculate the total cost assigned to the each vehicle sold.
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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Replies
wrote...
6 years ago
a.   Costing rates   Actual   

   Units sold cost   $30,300,000/2,500   
   = $12,120   

   Buying cost      $182,000/2,600   
      = $70   

   Cleaning cost   $150,000/2,500   
      = $60   

   Sales support cost   $247,500/2,500   
      = $99   

b.   Actual = $12,120 + $70 + $60 + $99 = $12,349
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