Chapter 2, Problem 21E

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. 1. Calculate the total cost of direct materials used in production.
2. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost.
3. 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?