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Slapshot Company makes ice hockey sticks. Last week, direct materials (wood, paint, Kevlar, and resin) costing $24,000 were put into production. Direct labor of $40,000 (20 workers x 100 hours x $20 per hour) was incurred. Manufacturing overhead equaled $56,000. By the end of the week, the company had manufactured 4,000 hockey sticks.
Required:
Calculate the total prime cost for last week. Calculate the per-unit prime cost. Also calculate the total conversion cost for last week. Calculate the per-unit conversion cost.
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