Ross Company makes handbags. Last month, direct materials (leather, thread, zippers, decorative accents) costing $76,000 were put into production. Ross Company had 30 workers, each of whom worked for 160 hours during the month and was paid $12 per hour. Manufacturing overhead equaled $80,000 for the period. Ross Company produced 40,000 handbags by the end of the month.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Ross Company makes handbags. Last month, direct materials (leather, thread, zippers, decorative accents) costing $76,000 were put into production. Ross Company had
30 workers, each of whom worked for 160 hours during the month and was paid $12 per hour. Manufacturing overhead equaled $80,000 for the period. Ross Company
produced 40,000 handbags by the end of the month.
Required:
Calculate the total product cost for the month.
Calculate the unit cost of one produced handbag. Round the unit cost to two decimal places.
Transcribed Image Text:Ross Company makes handbags. Last month, direct materials (leather, thread, zippers, decorative accents) costing $76,000 were put into production. Ross Company had 30 workers, each of whom worked for 160 hours during the month and was paid $12 per hour. Manufacturing overhead equaled $80,000 for the period. Ross Company produced 40,000 handbags by the end of the month. Required: Calculate the total product cost for the month. Calculate the unit cost of one produced handbag. Round the unit cost to two decimal places.
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