BASIC COST FLOWS Gardner Company produces a common machine component for industrial equipment.

The component is produced in three departments: molding, grinding, and finishing.

The following data are available for the month of September:

Molding Department ($)

Grinding Department ($)

Finishing Department ($)

Direct materials 30,800 3,800 2,450 Direct labor 2,300 5,600 3,800 Applied overhead 3,500 27,200 3,800 During September, 3,000 components were completed. There is no beginning or ending WIP in any department.

Required:

. Prepare a schedule showing, for each department, the cost of direct materials, direct labor, applied overhead, product transferred in from a prior department, and total manufacturing cost.

. Calculate the unit cost.

Exercise