# Calculating unit cost

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?

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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.

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#### Solution Preview

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

A company produced 14,000 clay units this month.Â Â 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.