FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Total and Unit Product Cost
Martinez Manufacturing Inc. showed the following costs for last month:
|
Direct materials |
$7,000 |
|
Direct labor |
3,000 |
|
Manufacturing |
2,000 |
|
Selling expense |
8,000 |
Last month, 4,000 units were produced and sold.
Required:
- Classify each of the costs as product cost or period cost.
|
Direct materials |
|
|
Direct labor |
|
|
Manufacturing overhead |
|
|
Selling expense |
|
- What is the total product cost for last month?
$ - What is the unit product cost for last month?
$per unit
Product Cost in Total and Per Unit
Grin Company manufactures digital cameras. In January, Grin produced 4,000 cameras with the following costs:
|
Direct materials |
$400,000 |
|
Direct labor |
80,000 |
|
Manufacturing overhead |
320,000 |
There were no beginning or ending inventories of WIP.
Required:
- What was the total product cost in January?
The total product cost in January is $. - What was the product cost per unit in January?
The product cost per unit in January is $.
Prime Cost and Conversion Cost
Grin Company manufactures digital cameras. In January, Grin produced 4,000 cameras with the following costs:
|
Direct materials |
$400,000 |
|
Direct labor |
80,000 |
|
Manufacturing overhead |
320,000 |
There were no beginning or ending inventories of WIP.
Required:
If required, round your answers to the nearest cent.
- What was the total prime cost in January?
$ - What was the prime cost per unit in January?
$per unit - What was the total conversion cost in January?
$ - What was the conversion cost per unit in January?
$per unit
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