Cost Definitions

Picante, Inc., provided the following information for the last calendar year:

Beginning inventory:
Direct materials		$150,500
Work in process		95,300
Ending inventory:
Direct materials		$145,300
Work in process		91,400

During the year, direct materials purchases amounted to $184,800, direct labor cost was $149,100, and overhead cost was $228,800. There were 20,000 units produced.

Required:

1. Calculate the total cost of direct materials used in production.

$fill in the blank 1

2. Calculate the cost of goods manufactured.

$fill in the blank 2

Calculate the unit manufacturing cost. If required, round your answer to the nearest cent.

$fill in the blank 3 per unit

3. Of the unit manufacturing cost calculated in Requirement 2, $9.50 is direct materials and $11.44 is overhead. If required, round intermediate calculations and your final answers to the nearest cent.

What is the prime cost per unit?

$fill in the blank 4 per unit

What is the conversion cost per unit?

$fill in the blank 5 per unit

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1. Direct materials are those materials traceable to the good or service being produced.

2. Cost of goods manufactured represents the total costs of completed goods during the period.

3. Which product costs are considered prime costs? Conversion costs?