Greenspring produced 10 000 units during January 2017. The pricing policy is to

Question

Greenspring produced 10 000 units during January 2017. The pricing policy is to set the pr per unit at the product cost (per unit) plus 100% mark-up. Presented below are the costs and expenses that are incurred in January 2017 Factory electricity cost $10 200Direct labour S69 300 yo Factory manager's salary o Indirect factory labour 28 300-pertod s 000 Sales staff salaries 48 100 Repairs to office equipment 230 500 9 Factory machinery repairs 257 300 Marketing costs o Indirect materials Direct materials 2 300 8 500 C 900 periad - Depreciation on office Costs. equipment 8 320 Office supplies used

Explanation / Answer

Price per unit: $ 124.54

Computation of price per unit:

Direct Materials $ 257,300 Direct Labor 69,300 Indirect Materials 230,500 Indirect Factory Labor 48,100 Factory Electricity Cost 10,200 Factory Manager's Salary 5,000 Factory Machinery Repairs 2,300 Total Manufacturing Cost $ 622,700 Production in Units 10,000 Unit Product Cost $ 62.27 Desired Mark-up 62.27 Price per unit $ 124.54

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