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.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Managerial Accounting The Cornerstone Of Business Decision Making

ISBN: 9780357715345

8th Edition

Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Question Posted: