Little Bite, Inc. manufactures dog biscuits for big dogs. Last month the company produced 18,000 biscuits. Using job order costing, determine the product unit cost for one dog biscuit based on the following costs:
Production facility utilities............................................$1,200
Depreciation on production equipment............................$500
Indirect materials..............................................................$300
Direct materials.............................................................$5,100
Indirect labor....................................................................$800
Direct labor...................................................................$3,200
Sales commissions.........................................................$5,000
President's salary...........................................................$9,000
Insurance on production facility......................................$700
Advertising expense........................................................$800
Rent on production facility..........................................$5,000
Rent on sales office.....................................................$3,000
And legal expense..........................................................$800
Found your answer to two decimal places.
Do not add in the following amounts for your computation as these are not factory overhead. The midterm will also have these expenses listed, but not used.
Sales commissions.......................$5,000
President's salary.........................$9,000
Advertising expense.......................$800
Rent on sales office.....................$3,000
And legal expense...........................$800
List and add the cost amounts that apply and divide by quantity produced.