Determine the cost per pound of goody

Reference no: EM13155462

Pitt Chemical Co. manufactures & sells Goody, a product that sells for $10 per pound. The mfg process also yields 1 pound of a waste product, called Baddy, in the production of every 10 pounds of Goody. Disposal of the waste product costs $1 per pound. During March, the company manufactured 200,000 pounds of Goody. Total manufacturing costs were as follows:

Direct materials $232,000

Direct Labor 120,000

Mfg Support Costs 60,000

Total Costs $412,000

Determine the cost per pound of Goody.

Reference no: EM13155462

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