China Trade, Inc. manufactures custom made stuffed animals. Last month, the company produced 500 stuffed pandas for the local zoo to sell at a fund-raising event. Using job order costing, determine the product unit cost of a stuffed panda based on the following costs incurred during the month: Manufacturing utilities $200 Depreciation on manufacturing equipment $250 Indirect materials $150 Direct materials $1000 Indirect labor $400 Direct labor $1200 Sales commissions $3000 Presidents salary $4000 Insurance on manufacturing plant $300 Advertising expense $500 Rent on manufacturing plant $2500 Rent on sales $4,000 $250 Legal expense Required: Compute product unit cost
China Trade, Inc. manufactures custom made stuffed animals. Last month, the company produced 500 stuffed pandas for the local zoo to sell at a fund-raising event. Using job order costing, determine the product unit cost of a stuffed panda based on the following costs incurred during the month: Manufacturing utilities $200 Depreciation on manufacturing equipment $250 Indirect materials $150 Direct materials $1000 Indirect labor $400 Direct labor $1200 Sales commissions $3000 Presidents salary $4000 Insurance on manufacturing plant $300 Advertising expense $500 Rent on manufacturing plant $2500 Rent on sales $4,000 $250 Legal expense Required: Compute product unit cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:China Trade, Inc. manufactures custom made stuffed
animals.
Last month, the company produced 500 stuffed pandas for
the local zoo to sell at a fund-raising event.
Using job order costing, determine the product unit cost of
a stuffed panda based on the following costs incurred
during the month:
Manufacturing utilities
$200
Depreciation on manufacturing equipment $250
Indirect materials
$150
Direct materials
$1000
Indirect labor
$400
Direct labor
$1200
Sales commissions
$3000
Presidents salary
$4000
Insurance on manufacturing plant
$300
Advertising expense
$500
Rent on manufacturing plant
$2500
Rent on sales
$4,000
$250
Legal expense
Required:
Compute product unit cost
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