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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

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:

  1. Calculate the total manufacturing cost per unit for Coca-Cola Classic.
  2. Determine the total manufacturing cost per unit for Sprite.
  3. 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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