Clear Water Drinking Company manufactures high-quality drinking flasks for use in dorm rooms, apartments, classrooms, offices, and
Question:
Clear Water Drinking Company manufactures high-quality drinking flasks for use in dorm rooms, apartments, classrooms, offices, and travel situations where customers desire to transport hot or cold beverages. Last week, direct materials (stainless steel, silver, copper, and plastic) costing $500,000 were put into production. Direct labor of $100,000 (125 workers × 40 hours × $20 per hour) was incurred. Manufacturing overhead equaled $400,000. By the end of the week, Clear Drinking had manufactured 50,000 flasks.
Required:
1. Calculate the total prime cost for last week.
2. Calculate the per-unit prime cost.
3. Calculate the total conversion cost for last week.
4. Calculate the per-unit conversion cost.
Step by Step Answer:
Managerial Accounting The Cornerstone Of Business Decision Making
ISBN: 9780357715345
8th Edition
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger