Reference no: EM132634550

Palmer Manufacturing produces weather vanes. For the year just ended, Palmer produced 10,000 weather vanes with the following total costs:

Direct materials $20,000

Direct labor 35,000

Overhead 10,000

Selling expenses 6,250

Administrative expenses 14,400

During the year, Palmer sold 9,800 units for $12 each. Beginning finished goods inventory consisted of 630 units with a total cost of $4,095. There were no beginning or ending inventories of work in process.

Required:

Question a. Calculate the unit costs for the following: direct materials, direct labor, overhead, prime cost, and conversion cost.

Question b. Prepare schedules for cost of goods manufactured and cost of goods sold.