Question
Cost Definitions Picante, Inc., provided the following information for the last calendar year: Beginning inventory: Direct materials $35,200 Work in process 50,000 Ending inventory: Direct
Cost Definitions
Picante, Inc., provided the following information for the last calendar year:
Beginning inventory: | ||
Direct materials | $35,200 | |
Work in process | 50,000 | |
Ending inventory: | ||
Direct materials | $21,600 | |
Work in process | 22,400 |
During the year, direct materials purchases amounted to $255,200, direct labor cost was $174,000, and overhead cost was $309,600. There were 40,000 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, $6.72 is direct materials and $7.74 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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