In: Accounting
What is the product cost for Job 23 which consists of 400 units and total manufacturing costs of direct materials $3,200, direct labor $6,400, and overhead of $2,800?
Prepare a cost of goods manufactured and cost of goods sold section of the income statement
1
Total Product cost = (Direct materials + Direct
labor + Manufacturing Overhead)
=> ($3200 + $6400 + $2800)
=> $12400
So, Unit Product cost for Job 23 = (Total product
cost / Total units produced)
=> ($12400 / 400 units)
=> $31 product cost per unit
(Ans)
2
Job 23
Cost of goods manufactured and Cost of goods sold section
of Income statement
Particulars | Amount ($) | Amount ($) |
Direct materials: | ||
Beginning inventory of raw materials | 0 | |
Add: Purchases of raw materials | 3200 | |
Less: Ending inventory of raw materials | 0 | |
Direct materials used in production | 3200 | |
Direct labor | 6400 | |
Manufacturing overhead | 2800 | |
Total manufacturing cost | 12400 | |
Add: Beginning work in process inventory | 0 | |
Less: Ending work in process inventory | 0 | |
Cost of goods manufactured | $12400 | |
Add: Beginning Finished goods inventory | 0 | |
Less: Ending Finished goods inventory | 0 | |
Cost of goods sold | $12400 |
(If there are any issues or questions, kindly let me know in comments. If the solution is to your satisfaction, a thumbs up would be appreciated. Thank You)