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Sofea Factory manufactures key chains for college bookstores. During 2003, the company had the following costs: Direct materials used $ 31,000 Direct labour 18,000 Factory rent 12,000 Equipment deprecation – factory 2,000 Equipment depreciation – office 750 Marketing expense 2,500 Administrative expenses 40,000 35,000 units produced were in 2003. What is the product cost per unit? approximately $1.24 b. $1.80 c. approximately $3.04 d. $1.40 e. approximately $1.82

Sofea Factory manufactures key chains for college bookstores. During 2003, the company had the following costs: Direct materials used $ 31,000 Direct labour 18,000 Factory rent 12,000 Equipment deprecation – factory 2,000 Equipment depreciation – office 750 Marketing expense 2,500 Administrative expenses 40,000 35,000 units produced were in 2003. What is the product cost per unit? approximately $1.24 b. $1.80 c. approximately $3.04 d. $1.40 e. approximately $1.82

FINANCIAL ACCOUNTING
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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  1. Sofea Factory manufactures key chains for college bookstores. During 2003, the company had the following costs:

 

Direct materials used                        $   31,000
Direct labour                                        18,000
Factory rent                                         12,000
Equipment deprecation – factory           2,000
Equipment depreciation – office                750
Marketing expense                                 2,500
Administrative expenses                         40,000

 

35,000 units produced were in 2003. What is the product cost per unit?


  1. approximately $1.24
    b. $1.80
    c. approximately $3.04
    d. $1.40
    e. approximately $1.82                        
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