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:

Question

Business

Kamari Hooper

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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Answers (1)

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Regan Chen · Answer 1

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