Question
Craftsman Incorporated manufactures interior and exterior doors. The following costs relate to one month's activity in Craftsman Incorporated: Utilities on factory $250 Indirect materials $300
Craftsman Incorporated manufactures interior and exterior doors. The following costs relate to one month's activity in Craftsman Incorporated: Utilities on factory $250 Indirect materials $300 Selling expense $500 Maintenance of equipment $50 Administrative expense $300 Rent on factory building $500 Direct labour $1,500 Direct material used $1,200 Work in process inventory, beginning $600 Work in process inventory, ending $800 Finished goods inventory, beginning $500 Finished goods inventory, ending $250 Required A. Prepare a Schedule of Cost of Goods Manufactured. B. Determine the Cost of Goods Sold C. Assume Craftsman Incorporated produced the equivalent of 500 units during this particular month. What was the average cost per unit for Direct Materials? For rent on factory building? D. Assume next month Craftsman Incorporated plans to produce 600 units of product. What average cost per unit and total cost would you expect to be incurred for direct material? For rent on factory building?
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