Johnson Manufacturing has the following data for the production and sale of 4,500 units: Item Sales Price Fixed Costs Cost $625.00 per unit Marketing and administrative $425,000 per period Manufacturing overhead Variable Costs $180,000 per period Marketing and administrative $45.00 per unit Manufacturing overhead Direct labor Direct material $70.00 per unit $85.00 per unit $175.00 per unit What is the full cost per unit of making and selling the product? a. 525.00 b. 575.00 c. 509.44 d. 480.00

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...
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Johnson Manufacturing has the following data for the production and sale
of 4,500 units:
Item
Sales Price
Fixed Costs
Cost
$625.00 per unit
Marketing and administrative $425,000 per period
Manufacturing overhead
Variable Costs
$180,000 per period
Marketing and administrative $45.00 per unit
Manufacturing overhead
Direct labor
Direct material
$70.00 per unit
$85.00 per unit
$175.00 per unit
What is the full cost per unit of making and selling the product?
a. 525.00
b. 575.00
c. 509.44
d. 480.00
Transcribed Image Text:Johnson Manufacturing has the following data for the production and sale of 4,500 units: Item Sales Price Fixed Costs Cost $625.00 per unit Marketing and administrative $425,000 per period Manufacturing overhead Variable Costs $180,000 per period Marketing and administrative $45.00 per unit Manufacturing overhead Direct labor Direct material $70.00 per unit $85.00 per unit $175.00 per unit What is the full cost per unit of making and selling the product? a. 525.00 b. 575.00 c. 509.44 d. 480.00
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