During the month of February, Madison Company incurred a prime cost of $80,000. The company's manufacturing overhead cost is 40% of its prime cost. Also, the company spent $2,000 on wages paid to forklift operators in the finished goods warehouse. During February, the total product cost was: a. $80,000 b. $110,000 c. $112,000 d. $114,000 e. $133,333

During the month of February, Madison Company incurred a prime cost of $80,000. The company's manufacturing overhead cost is 40% of its prime cost. Also, the company spent $2,000 on wages paid to forklift operators in the finished goods warehouse. During February, the total product cost was: a. $80,000 b. $110,000 c. $112,000 d. $114,000 e. $133,333

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Wyandotte Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 256,900, direct labor cost was 176,000, and overhead cost was 308,400. There were 40,000 units produced. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 6.62 is direct materials and 7.71 is overhead. What is the prime cost per unit? Conversion cost per unit?
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