Wild Things, Inc., manufactures custom-made stuffed animals. Last month the comp

Question

Wild Things, Inc., manufactures custom-made stuffed animals. Last month the company produced 4,540 stuffed bears with stethoscopes for the local children's hospital to sell at a fund-raising event. Usingjob ordercosting, determine the product unit cost of a stuffed bear based on the following costs incurred during the month: manufacturing utilities, $500; depreciation on manufacturing equipment, $450; indirect materials, $300; direct materials, $1,300; indirect labor, $800; direct labor, $2,400; sales commissions, $3,000; president's salary, $4,000; insurance on manufacturing plant, $600; advertising expense, $500; rent on manufacturing plant, $5,000; rent on sales office, $4,000; and legal expense, $250. Carry your answer to two decimal places.
$per unit

Explanation / Answer

Total cost = $500+ $450+300+1300+800+2400+3000+4000+600+500+5000+4000+250 =$23100 product unit cost =23100/4540 =5.09 per unit

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