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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

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.

#### 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.

\$2.49