Compute the cost to manufacture one unit of product

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Reference no: EM13512906

The Montreal Manufacturing Company incurred the following costs for the month of June:

Materials used:


Direct materials

$6,600

Indirect materials

1,200

Payroll costs incurred:


Direct labor

6,000

Indirect labor

1,700

Salaries:


Production

2,400

Administration

5,100

Sales

3,200

Other costs:


Building rent (production uses one-half of the building space)

1,400

Rent for molding machine (*per month, plus $0.50 per unit produced)

400*

Royalty paid for the use of production patents

(calculation based on units produced, $0.80 per unit) Indirect miscellaneous costs:


Production

2,700

Sales and administration

1,800

The beginning work-in-process inventory was $6,000; the ending work-in-process inventory was $5,000. Assume that 1,000 units were produced during the month.

1. Prepare a statement of cost of goods manufactured for the month.

2. Compute the cost to manufacture one unit of product.

Reference no: EM13512906

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