Princeton Fabrication, Inc., produced and sold 1,200 units of the company's only product in March. You have collected the following information from the accounting records: Sales price (per unit) Manufacturing costs: $127 Fixed overhead (for the month) 12,000 Direct labor (per unit) 9 Direct materials (per unit) 35 Variable overhead (per unit) 23 Marketing and administrative costs: Fixed costs (for the month) Variable costs (per unit) 19,200 4 Compute the following: 1. Variable manufacturing cost per unit. 2. Full cost per unit. 3. Variable cost per unit. 4. Full absorption cost per unit.

Princeton Fabrication, Inc., produced and sold 1,200 units of the company's only product in March. You have collected the following information from the accounting records: Sales price (per unit) Manufacturing costs: $127 Fixed overhead (for the month) 12,000 Direct labor (per unit) 9 Direct materials (per unit) 35 Variable overhead (per unit) 23 Marketing and administrative costs: Fixed costs (for the month) Variable costs (per unit) 19,200 4 Compute the following: 1. Variable manufacturing cost per unit. 2. Full cost per unit. 3. Variable cost per unit. 4. Full absorption cost per unit.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. 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, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
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