Compute the average product cost per bookcase.
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Shulmans Company manufactures a beautiful bookcase that enjoys widespread popularity. The company has a backlog of orders that is large enough to keep production going indefinitely at the plant's full capacity of 4,300 bookcases per year. Annual cost data at full capacity follow: |
| Direct materials used (wood and glass) | $ | 435,200 |
| Administrative office salaries | $ | 114,900 |
| Factory supervision | $ | 70,800 |
| Sales commissions | $ | 68,800 |
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$ | 105,100 |
| Depreciation, administrative office equipment | $ | 2,360 |
| Indirect materials, factory | $ | 22,900 |
| Factory labor (cutting and assembly) | $ | 91,200 |
| Advertising | $ | 101,300 |
| Insurance, factory | $ | 6,420 |
| Administrative office supplies (billing) | $ | 4,420 |
| Property taxes, factory | $ | 19,700 |
| Utilities, factory | $ | 48,300 |
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| Required: | |
| 1. |
Enter the dollar amount of each cost item under the appropriate headings. Note that each cost item is classified in two ways: first, as either variable or fixed with respect to the number of units produced and sold; and second, as either a selling and administrative cost or a product cost. (If the item is a product cost, it should also be classified as either direct or indirect.) |
| 2. |
Compute the average product cost per bookcase. (Round your answer to nearest whole number.) |
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