The following information pertains to the production of 120,000 units of a product. Sales price per unit
Question:
Sales price per unit ...... $45
Direct materials cost .... $2,400,000
Direct labor cost ..... 720,000
Factory overhead ...... Allocated to each unit at 140% of labor cost
Sales commission .... 6% of price
Distribution costs ..... $960,000
Selling costs ........ $480,000
Required:
a. Calculate the inventoriable cost per unit of this product.
b. Do you believe that the inventoriable cost is adequate for evaluating this product’s profit per unit?
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Related Book For
Managerial accounting
ISBN: 978-0471467854
1st edition
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin
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