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    Calculating unit cost

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    A company produced 14,000 clay units this month. The cost information for the company for the month is below:

    Clay - $14,000
    Paint - 7,000
    Factory labor - 28,000
    Supervisory labor - 15,000
    Kiln and wheel depreciation - 3,000
    Sales commissions - 1,400
    Electricity for kiln - 3,000
    Advertising - 2,000
    Administrative expenses 10,000

    My question is how do I figure out the total unit cost of the product?


    I believe the unit cost is: total cost of direct materials, direct labor, and manufacturing overhead for the units produced divided by the total units produced.

    I get $5.00 per unit am I correct? I think I went wrong in my calculation.

    Thank you for your help.

    © BrainMass Inc. brainmass.com March 4, 2021, 8:35 pm ad1c9bdddf

    Solution Preview

    The attached excel file contains the calculation for the unit cost.

    A company produced 14,000 clay units this month.  The cost information for the company for the ...

    Solution Summary

    This posting contains calculation of unit cost of a product based on the given costs.