During the month just ended, * EDUCASA*   produced 34,000 cloth backpacks, of which 93% were sold.

The costs incurred   to make the 34,000 backpacks are:

DIRECT MATERIALS

• 21,000 yards of fabric at Lps 56.80 each yard.
• 34,000 siper at Lps 1.55 each.
• 11,600 yards of blanket for a total of Lps 9,860.00

 

HAND OF LABOR

• Operators 250 hours at Lps 62.90 each hour.
• Supervisors 99 hours at Lps 75.20 per hour.
• Quality Control Lps 5,000.00 (total)

 

OTHER COSTS.

• Machine depreciation Lps 2,465.00 (total)
• Basic services (factory) Lps 1,985.00 (total)
• Indirect materials Lps 0.46 for each backpack.
• Operating expenses 2.7% of sales.
• Financial costs Lps 0.03 per unit produced.
• Marketing costs Lps 0.12 per unit.
• Expected gross profit 66%

Required:

1. Total and unit production costs.
2. Unitary and total income statement.

 

Answer rating: 100% (QA)

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