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Company LMN is evaluating its production costs for the month of May. The following information is available: Total units produced: 5,000 Total direct materials cost:



  • Company LMN is evaluating its production costs for the month of May. The following information is available:

    • Total units produced: 5,000
    • Total direct materials cost: $25,000
    • Total direct labor cost: $18,000
    • Total manufacturing overhead cost: $12,000
    • Fixed selling and administrative expenses: $6,000
  • Requirements:

    • Calculate the total manufacturing cost per unit.
    • Determine the total cost of goods manufactured.
    • Compute the total cost per unit including fixed selling and administrative expenses.
    • Analyze the cost structure and its impact on profitability.

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