Reference no: EM132103079
Question - During its first year of operations, Corvallis Company incurred the following costs: direct materials - $15,000; production workers' wages - $25,000; sales commission - $12,000; advertising - $2,500; rent on the manufacturing plant - $11,000; depreciation of plant equipment - $9,000. The company produced 12,000 units and of these sold 8,000. What is the average production cost per unit?
St. Augustine Company incurred the following costs during 2006 (its first year of operations):
Advertising $5,000
Plant supervisor salary $60,000
Plant utilities $12,000
Rent on administration building $24,000
Direct materials $85,000
Rent of manufacturing equipment $8,000
During 2006, the company produced 50,000 units and sold 42,000 units for $5 each. What was the company's net income for year ended December 31, 2006?
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