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18 November, 16:22

Cross dishware manufactures a custom line of pottery. The company uses a job-order costing system. During June, the following costs were incurred on Job CD4340: direct materials $3,500 and direct labor $6,400. In addition, there was $2,500 of selling and shipping costs incurred on the job. The manager applied manufacturing overhead at the rate of $32 per direct labor-hour and Job CD4340 required 100 direct labor-hours. If Job CD4340 consisted of 1,000 pieces of pottery, the cost of goods sold per piece was:

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  1. 18 November, 19:25
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    COGS unit = $13.1

    Explanation:

    Giving the following information:

    During June, the following costs were incurred on Job CD4340: Direct materials $3,500

    Direct labor $6,400.

    Selling and shipping costs incurred $2,500

    The manager applied manufacturing overhead at a rate of $32 per direct labor-hour.

    Job CD4340 required 100 direct labor-hours.

    Q = 1000 pieces

    Cost of goods sold = direct material + direct labor + manufacturing overhead

    COGS = 3500 + 6400 + (32 * 100) = $13,100

    COGS unit = 13100/1000 = $13.1
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