LouAnne's Widgets has the following sales and production for the next quarter: January February March Sales 4,000 units 7,000 units 9,000 units Production 4,600 units 7,400 units 9,200 units Each widget requires 3 pounds of gelco compound. To prevent shortages, the LouAnne would like the inventory of gelco compound on hand at the end of each month to equal 10% of the following month's production needs. The inventory on January 1 is 1,380 pounds. The cost per pound of gelco compound is $6. Each unit requires 1/2 DLH to manufacture and each DLH is paid $18. Labor is paid in the month incurred. FOH is applied based on DLH. Estimated variable FOH is expected to be $500,000 and estimated DLH are expected to be 100,000. Fixed FOH is estimated to be $51,800 per month with $2,590 of that amount being depreciation of factory equipment and building. FOH is paid in the month incurred. What is the cost per unit of one of LouAnne's widgets in FEBRUARY?

LouAnne's Widgets has the following sales and production for the next quarter: January February March Sales 4,000 units 7,000 units 9,000 units Production 4,600 units 7,400 units 9,200 units Each widget requires 3 pounds of gelco compound. To prevent shortages, the LouAnne would like the inventory of gelco compound on hand at the end of each month to equal 10% of the following month's production needs. The inventory on January 1 is 1,380 pounds. The cost per pound of gelco compound is $6. Each unit requires 1/2 DLH to manufacture and each DLH is paid $18. Labor is paid in the month incurred. FOH is applied based on DLH. Estimated variable FOH is expected to be $500,000 and estimated DLH are expected to be 100,000. Fixed FOH is estimated to be $51,800 per month with $2,590 of that amount being depreciation of factory equipment and building. FOH is paid in the month incurred. What is the cost per unit of one of LouAnne's widgets in FEBRUARY?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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