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Use the following information for Brief Exercises 2-27 and 2-28: Morning Smiles Coffee Company manufactures Stoneware French Press coffee makers for use in dorm rooms,
Use the following information for Brief Exercises 2-27 and 2-28: Morning Smiles Coffee Company manufactures Stoneware French Press coffee makers for use in dorm rooms, apartments, homes, and travel situations where customers desire high-quality coffee in small amounts. Last week, direct materials (stoneware, paint, enamel, and steel) costing $100,000 were put into production. Direct labor of $18,000 (10 workers x 100 hours x $18 per hour) was incurred. Manufacturing overhead equaled $50,000. By the end of the week, Morning Smiles had manufactured 2,000 Stoneware French Press coffee makers. Brief Exercise 2-27. Total Product Cost and Per-Unit Product Cost Objective 2 Example 2.1 Refer to the information for Morning Smiles Coffee Company above. Required: 1. Calculate the total product cost for last week. 2. Calculate the per-unit cost of one coffee maker that was produced last week. Brief Exercise 2-28. Prime Cost and Conversion Cost Objective 2. Example 2.2 Refer to the information for Morning Smiles Coffee Company above. Required: 1. Calculate the total prime cost for last week. 2. Calculate the per-unit prime cost. 3. Calculate the total conversion cost for last week. 4. Calculate the per-unit conversion cost
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