The Bayou Company makes crab pots. During the current month, direct materials co
ID: 2415203 • Letter: T
Question
The Bayou Company makes crab pots. During the current month, direct materials costing $126,000 were put into production. Direct labor of $78,000 was incurred and overhead equaled $84,000. Selling and administrative expenses totaled $66,000 for the month and the company manufactured 3,000 crab pots. Assume there was no beginning inventory and that? 2,800 crab pots were sold. Compute the per-unit product cost Compute the per-unit prime cost Compute the per-unit conversion cost What is cost of goods sold for the month? What is the cost of ending finished goods for the month?Explanation / Answer
A. Per unit product cost = (126000 + 78000 + 84000 + 66000)/3000
118 per unit
B. Prime cost per unit = (126000 + 78000 + 84000)/3000
= $96 per unit
C.Conversion cost per unit = (78000 + 84000)/3000
= $54 per unit
D. Cost of goods sold = 96 x 2800 + 66000
= 334800
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