Bingimton Company
Bingimton Company provided the following information for last month. $$\begin{array} { l r }
\text { Production in units } & 1,000 \
\text { Direct materials cost } & \$ 3,000 \
\text { Direct labour cost } & \$ 4,000 \
\text { Manufacturing overhead cost } & \$ 7,600 \
\text { Sales commission per unit sold } & \$ 2 \
\text { Price per unit sold } & \$ 24 \
\text { Fixed selling and administrative expense } & \$ 5,000
\end{array}$$ There were no beginning and ending inventories.
-Refer to Bingimton Company. What is the cost of goods sold per unit?

Question

Bingimton Company
Bingimton Company provided the following information for last month. $$\begin{array} { l r } 
\text { Production in units } & 1,000 \
\text { Direct materials cost } & \$ 3,000 \
\text { Direct labour cost } & \$ 4,000 \
\text { Manufacturing overhead cost } & \$ 7,600 \
\text { Sales commission per unit sold } & \$ 2 \
\text { Price per unit sold } & \$ 24 \
\text { Fixed selling and administrative expense } & \$ 5,000
\end{array}$$ There were no beginning and ending inventories.
-Refer to Bingimton Company. What is the cost of goods sold per unit?

Quizplus · Accepted Answer

The cost of goods sold per unit includes direct materials, direct labor, and manufacturing overhead costs. Total production cost = $3,000 (materials) + $4,000 (labor) + $7,600 (overhead) = $14,600. Dividing by 1,000 units gives $14.60 per unit.

Bingimton Company Bingimton Company Provided the Following Information for Last

Bingimton Company
Bingimton Company Provided the Following Information for Last