Picture It Inc. manufactures customized wooden frames. The direct materials needed to construct the frames are wood, glass and cardboard. Picture It has 22 employees who work a 40 hour work week and are each paid $17 per hour. The company produced and sold 900 frames in the month of September.
During the month of September the following purchases were made to produce the 900 frames:
Wood- 4000 ft. at $1.20/ft.
Glass- 400 pieces at $5.60/piece
Cardboard- 500 pieces at $.50/piece
Required:
1. Calculate the total product cost for the month. Assume that all employees worked four full weeks in September and that the company incurred $55,000 in overhead costs.
2. Calculate the per unit cost.
3. Calculate the gross margin for the month of September assuming that the company sells each frame for $250.
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q228: See the following separate cases. Q229: The Butchart Company manufactures microwave ovens. Last Q230: Room With A View Company manufactures curtains. Q231: Macon Company supplied the following data Q232: Fidalgo Company makes stereos. During the year, Q234: The Blanchett Company manufactures fishing rods. Last Q235: Ross Company makes handbags. Last month direct Q236: In June, Olympic Company purchased materials Q237: Extrema Company supplied the following data at Q238: Rancor Company's accountant prepared the following income
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents