Wild Things inc.manufactures custom-made stuffed animals.Lastmonth. the company

Question

Wild Things inc.manufactures custom-made stuffed animals.Lastmonth. the company produced 4,540 stuffed bears withstethoscopes.Using job order costing, determine the product unitcost based on the following cost incurred during the month.
Manufacturing utilities - $ 500
Depreciation on manufacturing quip. - $ 450
Indirect materials - $ 300
Direct materials- $ 1,300
Indirect labor-800
D.labor-2,400
Sales commission -3,000
President's salary-4,000
Insurance on manufacturing plant - 600
Advertising exp - 500
Rent on manufacturing plant -5,000
Rent on sales office - 4,000
Legal expense - 250

Thank you

Explanation / Answer

Direct Materials 1,300.00 Direct Labor 2,400.00 Manufacturing overheads Indirect Material 300.00 Manufacturing Utilities 500.00 Depreciation on Manufacturing Equipment 450.00 Indirect Labor 800.00 Sales Commission 3,000.00 Insurance on Manufacturing plant 600.00 Advertising Expenditure 500.00 Rent on Manufacturing Plant 5,000.00 Rent on Sales Office 4,000.00 Total Cost 18,850.00 Number of Teddy bears produced 4,540.00 Product Unit Cost 18850 / 4540 Product Unit Cost 4.15 1   The president has to be paid salaryirrespective of       whether the Teddybears are manufactured or not .       Hence his salary hasnot been included in computing       Unit Costs. 2     Same goes for legalexpenses also. Unless they are incurred        solely for thespecific job . In that case the total cost will be         $19100& the unit Cost $4.21. Direct Materials 1,300.00 Direct Labor 2,400.00 Manufacturing overheads Indirect Material 300.00 Manufacturing Utilities 500.00 Depreciation on Manufacturing Equipment 450.00 Indirect Labor 800.00 Sales Commission 3,000.00 Insurance on Manufacturing plant 600.00 Advertising Expenditure 500.00 Rent on Manufacturing Plant 5,000.00 Rent on Sales Office 4,000.00 Total Cost 18,850.00 Number of Teddy bears produced 4,540.00 Product Unit Cost 18850 / 4540 Product Unit Cost 4.15

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.