Las Palmeras produce beach umbrellas. Listed below are various costs incurred during the month of June. Direct Materials $ 20,000 Indirect materials $ 5,000 Direct labor $ 30,000 Indirect labor $ 10,000 Vendor Commissions $ 25,000 Other indirect manufacturing costs $ 15,000 Taxes paid for operating income $ 30,000 Determine the cost per unit if the company manufactured 100,000 units
Las Palmeras produce beach umbrellas. Listed below are various costs incurred during the month of June. Direct Materials $ 20,000 Indirect materials $ 5,000 Direct labor $ 30,000 Indirect labor $ 10,000 Vendor Commissions $ 25,000 Other indirect manufacturing costs $ 15,000 Taxes paid for operating income $ 30,000 Determine the cost per unit if the company manufactured 100,000 units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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9. Las Palmeras produce beach umbrellas. Listed below are various costs incurred during the month of June. Direct Materials $ 20,000 Indirect materials $ 5,000 Direct labor $ 30,000 Indirect labor $ 10,000 Vendor Commissions $ 25,000 Other indirect
Determine the cost per unit if the company manufactured 100,000 units
Expert Solution
Step 1
| Compute the total manufacturing costs: | |
| Direct material | $20,000 |
| Indirect material | $5,000 |
| Direct labor | $30,000 |
| Indirect labor | $10,000 |
| Vendor commissions | $25,000 |
| Indirect manufacturing costs | $15,000 |
| Total manufacturing costs | $105,000 |
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