Coca-Cola Company uses process costing to allocate its production costs for two of its beverages: Coca-Cola Classic
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Question:
Coca-Cola Company uses process costing to allocate its production costs for two of its beverages: Coca-Cola Classic and Sprite.
- Coca-Cola Classic Production Costs:
- Direct Materials Cost per unit: $0.50
- Direct Labor Cost per unit: $0.20
- Manufacturing Overhead Cost per unit: $0.30
- Sprite Production Costs:
- Direct Materials Cost per unit: $0.40
- Direct Labor Cost per unit: $0.25
- Manufacturing Overhead Cost per unit: $0.35
Requirements:
- Calculate the total manufacturing cost per unit for Coca-Cola Classic.
- Determine the total manufacturing cost per unit for Sprite.
- Compute the total manufacturing cost for both beverages combined.
Beverage | Direct Materials Cost | Direct Labor Cost | Manufacturing Overhead Cost |
Coca-Cola Classic | $0.50 | $0.20 | $0.30 |
Sprite | $0.40 | $0.25 | $0.35 |
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