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16 September, 12:19

Slapshot Company makes ice hockey sticks. Last week, direct materials (wood, paint, Kevlar, and resin) costing $28,000 were put into production. Direct labor of $28,000 (10 workers x 100 hours x $28 per hour) was incurred. Manufacturing overhead equaled $55,000. By the end of the week, the company had manufactured 5,600 hockey sticks. 1. Calculate the total prime cost for last week.$2. Calculate the per-unit prime cost. Round your answer to the nearest cent.$ per unit3. Calculate the total conversion cost for last week.$4. Calculate the per-unit conversion cost. Round your answer to the nearest cent.$ per unit

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  1. 16 September, 12:38
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    Part 1. Calculate the total prime cost for last week

    Direct materials 28,000

    Add Direct labor 28,000

    Prime Cost 56,000

    Part 2. Calculate the per-unit prime cost

    per-unit prime cost=$56,000/5,600

    =$10.00

    Part 3. Calculate the total conversion cost for last week

    Direct labor 28,000

    Add Manufacturing Overheads 55,000

    Total conversion cost 83,000

    Part 4. Calculate the per-unit conversion cost.

    per-unit conversion cost=$83,000/5,600

    =$14.82

    Explanation:

    Part 1. Calculate the total prime cost for last week

    Prime Cost = Direct Materials + Direct Labor

    Part 2. Calculate the per-unit prime cost

    Per Unit Prime Cost = total prime cost/number of units manufactured

    Part 3. Calculate the total conversion cost for last week

    Conversion Cost = Direct Labor + Manufacturing Overheads

    Part 4. Calculate the per-unit conversion cost.

    Per-unit conversion cost = Total Conversion Cost / number of units manufactured
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