The following product costs are available for Arrex Company on the production of DVD cases: direct materials, $1,705; direct labor, $15.00; manufacturing overhead, appiled at 150% of direct labor cont; selling expenses, $1,500; and administrative expenses, $1,050. The direct labor hours worked for the month are 100 hours. Round your answers to two decimal places. A. What are the prime cost? www c 5. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. 1,550 equivalent units are produced, what is the equivalent material cost per unit? What is the equivalent conversion cost per unit?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following product costs are available for Arrez Company on the production of DVD cases: direct materials, $1,705; direct labor, $15.50; manufacturing overhead, appilled at 150% of direct labor cost; selling expenses, $1,500; and administrative expenses, $1,050. The direct labor hours worked for the month are 100 hours. Round your answers to two decimal places.
A. What are the prime castal
5. What are the conversion costs?
D.
What is the total product cost?
What is the total period cost
E. If 1,550 equivalent units are produced, what is the equivalent material cost per unit?
What is the equivalent conversion cost per unit?
Transcribed Image Text:The following product costs are available for Arrez Company on the production of DVD cases: direct materials, $1,705; direct labor, $15.50; manufacturing overhead, appilled at 150% of direct labor cost; selling expenses, $1,500; and administrative expenses, $1,050. The direct labor hours worked for the month are 100 hours. Round your answers to two decimal places. A. What are the prime castal 5. What are the conversion costs? D. What is the total product cost? What is the total period cost E. If 1,550 equivalent units are produced, what is the equivalent material cost per unit? What is the equivalent conversion cost per unit?
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The conversion cost comprises direct labor and manufacturing overhead. The unit cost can be estimated as dividing total cost by the number of units produced.

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