(TCO 6) MedicalTechnical, Inc. manufactures surgical instruments to the exacting
ID: 2460188 • Letter: #
Question
(TCO 6) MedicalTechnical, Inc. manufactures surgical instruments to the exacting specifications of various customers. During April 2005, Job 911 for the production of 4,500 instruments was completed at the following costs per unit.
Direct materials $ 60
Direct manufacturing labor 20
Allocated manufacturing overhead 80
$160
Final inspection of Job 911 disclosed 100 defective units and 50 spoiled units. The defective instruments were reworked at a total cost of $12,000, and the spoiled instruments were sold to a jobber for $3,000.
What would be the unit cost of the good units produced on Job 911?
a. $160
b. $162
c. $164
d. $168
Explanation / Answer
unit cost of the good units produced on Job 911 = (160*4500+12000-3000)/(4500-50) = $ 164
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