The estimated unit costs for a company to produce and sell a product at a level of 12,000 units per month is as follows.
Cost item Estimated unit cost
Direct material $32
Direct labor 20
variable manufacturing overhead 15
fixed manufacturing overhead 6
variable selling expenses 3
fixed selling expenses
WHAT ARE THE ESTIMATED CONVERSION COSTS PER UNIT?
The second question is below.
Under xyz company's job order costing system manufacturing overhead is applied to work in process using a predetermined annual overhead rate. During January, xyz's transactions include the following
direct materials issued to production 90,000
indirect materials issued to production 8,000
manufacturing overhead incurred 125,000
manufacturing overhead applied 113,00
direct labor costs 107,000
XYZ had neither beginning nor ending inventory in work-in-process inventory.
WHAT WAS THE COST OF JOBS COMPLETED DURING JANUARY?
The solution discusses the estimated unit costs for company to produce/sell products.