The T & T Company makes fishing rods.During the current month,direct materials costing $126,000 were put into production.Direct labour costs of $110,000 were incurred and overhead equalled $100,000.Selling and administrative expenses totalled $66,000 for the month,and the company manufactured 3,500 fishing rods.Assume there was no beginning inventory and that 3,000 fishing rods were sold.
Required:
A. Compute the per-unit product cost.
B. Compute the per-unit prime cost.
C. Compute the per-unit conversion cost.
D. What is cost of goods sold for the month?
E. What is the cost of ending finished goods for the month?

Question

The T & T Company makes fishing rods.During the current month,direct materials costing $126,000 were put into production.Direct labour costs of $110,000 were incurred and overhead equalled $100,000.Selling and administrative expenses totalled $66,000 for the month,and the company manufactured 3,500 fishing rods.Assume there was no beginning inventory and that 3,000 fishing rods were sold.
Required:
 A. Compute the per-unit product cost.
B. Compute the per-unit prime cost.
C. Compute the per-unit conversion cost.
D. What is cost of goods sold for the month?
E. What is the cost of ending finished goods for the month?

Quizplus · Accepted Answer

The Answer of The T & T Company makes fishing rods.During the current month,direct materials costing $126,000 were put into production.Direct labour costs of $110,000 were incurred and overhead equalled $100,000.Selling and administrative expenses totalled $66,000 for the month,and the company manufactured 3,500 fishing rods.Assume there was no beginning inventory and that 3,000 fishing rods were sold.
Required:
 A. Compute the per-unit product cost.
B. Compute the per-unit prime cost.
C. Compute the per-unit conversion cost.
D. What is cost of goods sold for the month?
E. What is the cost of ending finished goods for the month?

The T & T Company Makes Fishing Rods