Computation of unit costs

Assignment Help Accounting Basics

Reference no: EM1364961

Carola Industries, Inc., manufactures discs for several of the leading recording studios in the United States and Europe. Department 60 is responsible for the electronic circuitry within each disc. Department 61 applies the plastic-like surface to the discs and packages them for shipment. Carola recently produced 4,000 discs for the Milo Company. In fulfilling this order, the departments incurred the following costs:

Department

60 61

Direct Materials Used $29,440 $3920

Direct Labor 6,800 2,560

Overhead 7,360 4,800

1. Compute the unit cost for each department.

2. Compute the total unit cost for the Milo Company order.

3. The selling price for this order was $14 per unit. Was the selling price adequate?

4. Compute the prime costs and conversion costs per unit for each department. If an amount box does not require an entry, leave it blank.

Reference no: EM1364961

Questions Cloud

What is theoretical maximum channel capacity : What is the theoretical maximum channel capacity (Kbps) of traditional telephone lines (POTS)? Will that be the actual maximum channel capacity?

What is the coefficient of linear expansion : find the coefficient of linear expansion for the material of which the rod is made.

Management of health-related services : What do you consider to be the most important attributes of good management practice? Discuss in relation to examples of good management of health-related services that you have encountered.

When did it become wrong to make a profit : When did it become wrong to make a profit - When did it become wrong to make a profit either domestically or internationally?

Computation of unit costs : Compute the unit cost for each department. Compute the total unit cost for the Milo Company order. The selling price for this order was $14 per unit. Was the selling price adequate? Compute the prime costs and conversion costs per unit for each depa..

Calculating total purchase price : Assume that you want to purchase a new truck from a local dealership. The dealership is offering 2 percent financing for 4 years. They are also offering a $3,000 cash rebate for an externally financed deal.

Elements of a medical organizations : What are the different elements of a medical organizations utilization management plan and how do they contribute to health care quality?

Explain the speed at which ball left the quarterbacks hand : the speed at which the ball left the quarterback's hand.

What is meant by value-added services : What is meant by value-added services and Why are these services considered essential in a customer success program?

User Account

All Pages