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    Estimated Unit Costs for Company to Produce/Sell Products

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    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?

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    Solution Summary

    The solution discusses the estimated unit costs for company to produce/sell products.

    $2.19