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Determine what average cost per unit for direct materials

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Reference no: EM132707878

Various cost and sales data for Meriwell Company for the just completed year appear below:

Purchases of raw materials . . . . . . .. . . . . $88000

Raw materials inventory, beginning. . . . . . . $9000

Raw materials inventory, ending. .. . . . . .$ 17000

Depreciation, factory . . . . . . . . . . . . . . . . $36000

Insurance, factory . . . . . . . . . . . . . . . . . . $4600

Direct labor . . . . . . . . . . . . . . . . . . . . . . . . $57000

Maintenance, factory . . . . . . . . . . . . . . . $28500

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $680000

Utilities, factory . . . . . . . . . . . . . . . . . . . . . $26100

Supplies, factory . . . . . . . . . . . . . . . . . . . . $1900

Selling expenses . . . . . . . . . . . . . . . . . . . $79600

Administrative expenses . . . . . . . . . . . . . $66300

Indirect labor . . . . . . . . . . . . . . . . . . . . $64300

Work in process inventory, beginning . . $5000

Work in process inventory, ending . . . $29400

Finished goods inventory, beginning . . . $11000

Finished goods inventory, ending . . . . $40000

Question 1: Assume that the company produced the equivalent of 10,000 units of product during the year. What was the average cost per unit for direct materials?

Question 2: As a continuation of (1), what was the average cost per unit for factory depreciation?

Question 3: Assume that the company expects to produce 15,000 units of product during the coming year. What average cost per unit would you expect the company to incur for direct materials at this level of activity?

Question 4: As a continuation to (3). what average cost per unit would you expect the company to incur for factory depreciation at this level of activity?

Reference no: EM132707878

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