Solution-Compute the cost to manufacture one unit of product

Compute the cost to manufacture one unit of product

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Reference no: EM13512906

The Montreal Manufacturing Company incurred the following costs for the month of June:

Materials used:
Direct materials	$6,600
Indirect materials	1,200
Payroll costs incurred:
Direct labor	6,000
Indirect labor	1,700
Salaries:
Production	2,400
Administration	5,100
Sales	3,200
Other costs:
Building rent (production uses one-half of the building space)	1,400
Rent for molding machine (*per month, plus $0.50 per unit produced)	400*
Royalty paid for the use of production patents (calculation based on units produced, $0.80 per unit) Indirect miscellaneous costs:
Production	2,700
Sales and administration	1,800

The beginning work-in-process inventory was $6,000; the ending work-in-process inventory was $5,000. Assume that 1,000 units were produced during the month.

1. Prepare a statement of cost of goods manufactured for the month.

2. Compute the cost to manufacture one unit of product.

Reference no: EM13512906

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Compute the cost to manufacture one unit of product

Reference no: EM13512906

Reference no: EM13512906

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