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P3. Keep Cool Industries, Inc., manufactures fans for personal use. Department 70 is responsible for assembling the fan. Department 71 packages them for shipment. Keep
P3. Keep Cool Industries, Inc., manufactures fans for personal use. Department 70 is responsible for assembling the fan. Department 71 packages them for shipment. Keep Cool recently produced 10,000 fans for a national retailer. In fulfilling this order, the departments incurred the following costs: Direct materials used $30,000 $4,000 Direct labor 1. Compute the unit cost for each department. 2. Compute the total unit cost for the national retailer order. 3. ACCOUNTING CONNECTIONThe selling price for this order was $10 per unit. Was the selling price adequate? List the assumptions and/or computations upon which you based management about the 4. Compute the prime costs and conversion costs per unit for each department. your answer. What suggestions would you make to Keep Cool's pricing of future orders
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