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