Chloes Sportswear manufactures a specialty line of mini skirts using a job order cost system. During June, the following costs were incurred in completing Job F28: direct materials $12,700; direct labour $3,200; non-factory administrative costs $1,200; and selling costs $5,600. Factory overhead was applied at the rate of $8.60 per machine hour and Job F28 required 190 machine hours. If Job F28 resulted in 1300 good mini skirts, the cost of goods sold per unit would be

Question

Quizplus · Accepted Answer

To determine the cost of goods sold per unit, we need to calculate the total cost of Job F28 and divide it by the number of good mini skirts produced.

Total cost of Job F28: 
Direct materials + Direct labor + Factory overhead applied 
= $12,700 + $3,200 + ($8.60/machine hour x 190 machine hours) 
= $12,700 + $3,200 + $1,634 = $17,534

Cost of goods sold per unit: 
Cost of Job F28 / Number of good mini skirts produced 
= $17,534 / 1300 
= $13.49

Therefore, the best choice is B.

Chloes Sportswear Manufactures a Specialty Line of Mini Skirts Using