Q-2) Company X produces audio equipments in its factory. Raw materials cost for an audio system is TL80 per unit. Workers on the production lines are paid TL19 per hour. An audio system takes 6 hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to TL5,900 per month. Miscellaneous materials cost TL5 per unit produced. A supervisor was hired to oversee production and her monthly salary is TL3,000. Factory janitorial costs will be TL1,500 per month. Local TV and radio channels will charge TL9,800 for advertisements per month. The factory building depreciation expense per year will be TL7,100, and factory property tax is TL12,000 per year. Material handling costs in the factory are expected to be around TL160 per month. Calculate unit production cost if the monthly production level is 1,510 units.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Q-2) Company X produces audio equipments in its factory. Raw materials cost for an audio system is TL80 per unit.
Workers on the production lines are paid TL19 per hour. An audio system takes 6 hours to complete. In addition,
the rent on the equipment used to assemble audio systems amounts to TL5,900
materials cost TL5 per unit produced. A supervisor was hired to oversee production and her monthly salary is
month. Miscellaneous
TL3,000. Factory janitorial costs will be TL1,500 per month. Local TV and radio channels will charge TL9,800 for
advertisements per month. The factory building depreciation expense per year will be TL7,100, and factory
property tax is TL12,000 per year. Material handling costs in the factory are expected to be around TL160 per
month. Calculate unit production cost if the monthly production level is 1,510 units.
Transcribed Image Text:per Q-2) Company X produces audio equipments in its factory. Raw materials cost for an audio system is TL80 per unit. Workers on the production lines are paid TL19 per hour. An audio system takes 6 hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to TL5,900 materials cost TL5 per unit produced. A supervisor was hired to oversee production and her monthly salary is month. Miscellaneous TL3,000. Factory janitorial costs will be TL1,500 per month. Local TV and radio channels will charge TL9,800 for advertisements per month. The factory building depreciation expense per year will be TL7,100, and factory property tax is TL12,000 per year. Material handling costs in the factory are expected to be around TL160 per month. Calculate unit production cost if the monthly production level is 1,510 units.
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