Question
Little Bite, Inc. manufactures dog biscuits for big dogs. Last month the company produced 18,000 biscuits. Using job order costing, determine the product unit cost
Little Bite, Inc. manufactures dog biscuits for big dogs. Last month the company produced 18,000 biscuits. Using job order costing, determine the product unit cost for one dog biscuit based on the following costs: production facility utilities, $1,200; depreciation on production equipment, $500; indirect materials, $300; direct materials, $5,100; indirect labor, $800; direct labor, $3,200; sales commissions, $5,000; president's salary, $9,000; insurance on production facility, $700; advertising expense, $800; rent on production facility, $5,000; rent on sales office, $3,000; and legal expense, $800. Round your answer to two decimal places.
DO NOT ADD IN THE FOLLOWING AMOUNTS FOR YOUR COMPUTATION AS THESE ARE NOT FACTORY OVERHEAD. THE MIDTERM WILL ALSO HAVE THESE EXPENSES LISTED, BUT NOT USED.
sales commissions, $5,000; president's salary, $9,000; advertising expense, $800; rent on sales office, $3,000; and legal expense, $800.
LIST AND ADD THE COST AMOUNTS THAT APPLY AND DIVIDE BY QUANTITY PRODUCED.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started