Wild Things, Inc., manufactures custom-made stuffed animals. Last month the comp

Question

Wild Things, Inc., manufactures custom-made stuffed animals. Last month the company produced 4,540 stuffed bears with stethoscopes for the local children's hospital to sell at a fund-raising event. Using job order costing, determine the product unit cost of a stuffed bear based on the following costs incurred during the month: manufacturing utilities, $500; depreciation on manufacturing equipment, $450; indirect materials, $300; direct materials, $1,300; indirect labor, $800; direct labor, $2,400; sales commissions, $3,000; president's salary, $4,000; insurance on manufacturing plant, $600; advertising expense, $500; rent on manufacturing plant, $5,000; rent on sales office, $4,000; and legal expense, $250. Carry your answer to two decimal places.

ANSWER: $ ______ per unit

Explanation / Answer

Total cost =$500+$450+ $300+ $1,300+ $800+ $2,400+ $3,000+$4,000+ $600+$500+ $5,000+ $4,000+ $250= $23,100.00 Per unit cost = $23,100.00/4,540=$5.09 per unit

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