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28 June, 10:54

Prime Cost and Conversion Cost Slapshot Company makes ice hockey sticks. Last week, direct materials (wood, paint, Kevlar, and resin) costing $23,000 were put into production. Direct labor of $28,000 (10 workers x 100 hours x $28 per hour) was incurred. Manufacturing overhead equaled $56,000. By the end of the week, the company had manufactured 2,800 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 unit

3. 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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Answers (1)
  1. 28 June, 11:58
    0
    1. $51,000

    2. $18.21

    3. $84,000

    4. $30

    Explanation:

    1. Total prime cost:

    = Direct material + Direct labor

    = $23,000 + $28,000

    = $51,000

    2. per-unit prime cost:

    = Total prime cost : No. of units produced in week

    = $51,000 : 2,800

    = $18.21

    3. Total conversion cost for last week:

    = Direct labor + Manufacturing overhead

    = $28,000 + $56,000

    = $84,000

    4. per-unit conversion cost:

    = Total conversion cost : No. of units produced in week

    = $84,000 : 2,800

    = $30
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