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Campus Coolers manufactures portable coolers with college logos. During 2018, the company had the following costs:...
Campus Coolers manufactures portable coolers with college logos. During 2018, the company had the following costs: Direct materials used $ 32,000 Factory rent 1,000 Shipping costs to retail store 600 Equipment depreciation - factory 2,000 Equipment depreciation - office 750 Advertising 2,500 Indirect labor 1,000 Administrative expenses 1,500 Direct labor 18,000 Sales commissions 3,000 3,000 units produced were in 2018. What is the product cost per unit? (Show calculations for partial credit.)
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Expert Solution
| Direct materials used | 32000 | |
| Direct labor | 18000 | |
| Manufacturing overhead: | ||
| Factory rent | 1000 | |
| Equipment depreciation - factory | 2000 | |
| Indirect labor | 1000 | |
| Total Manufacturing overhead | 4000 | |
| Total product cost | 54000 | |
| Divide by units produced | 3000 | |
| Product cost per unit | 18 | |
| $18 per unit is correct answer |
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