Pc bell, a computer manufacturer that sells computer systems directly to customers, buys a computer chip for $180, software for $350, and a printer for $30. if the value added by pc bell from selling this system (including the printer and the software) is $1,400 , what is the price at which the system is sold?

At $1,960 price the system is sold.

Explanation:

All the expenses is to be considered while calculating the total cost because these cost is attached with the amount and the same price is to be charged by the customer. These costs which are given in the question is the part of the product. Hence, it would be added in the selling price. The computation is shown below.

The total selling price of the sold = computer chip + software + printer + Value added amount

= $180 + $350 + $30 + $1,400

= $1,960

Thus, at $1,960 price the system is sold.

Answer

the unit cost of each product is

Explanation:

                          Moulding   Grinding   FinishingDirect Material           143,700               14,400              9,500Direct Labour              13,900                33,300             23,100Applied Overhead      18,300               136,400            18,500                                   Total cost                     175,900           184,100               51,100Transferred in cost                              175,900              Total Manufacturing    Cost                           175,900         360,000                411,100                                      unit cost = 51100 ÷ 9200 = 5.55