Using job order costing, determine the product unit cost based on the following

Question

Usingjob ordercosting, determine the product unit cost based on the following costs incurred during March: liability insurance, manufacturing, $2,500; rent, sales office, $2,900; depreciation, manufacturing equipment, $6,100; direct materials, $32,650; indirect labor, manufacturing, $3,480; indirect materials, $1,080; heat, light, and power, manufacturing, $1,910; fire insurance, manufacturing, $2,600; depreciation, sales equipment, $4,250; rent, manufacturing, $3,850; direct labor, $18,420; manager's salary, manufacturing, $3,100; president's salary, $5,800; sales commissions, $8,250; and advertising expenses, $2,975.

The Inspection Department reported that 48,800 good units were produced during March. Carry your answer to two decimal places.
$per unit

Explanation / Answer

Total cost = $2,500+ $2,900+ $6,100+ $32,650+$3,480+ $1,080+ $1,910+$2,600+$4,250+ $3,850+ $18,420+ $3,100+ $5,800+ $8,250+ $2,975 =99865 product unit cost =99865/48,800 = $2.046 per unit

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.