Question

In: Accounting

What is the product cost for Job 23 which consists of 400 units and total manufacturing...

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

Solutions

Expert Solution

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

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