Question

Cross dishware manufactures a custom line of pottery. The company uses a job-order costing system. During June, the following costs were incurred on Job CD4340: direct materials $3,500 and direct labor $6,400. In addition, there was $2,500 of selling and shipping costs incurred on the job. The manager applied manufacturing overhead at the rate of $32 per direct labor-hour and Job CD4340 required 100 direct labor-hours. If Job CD4340 consisted of 1,000 pieces of pottery, the cost of goods sold per piece was:

Answer 1

COGS unit= $13.1

Step-by-step explanation:

Giving the following information:

During June, the following costs were incurred on Job CD4340: Direct materials $3,500

Direct labor $6,400.

Selling and shipping costs incurred $2,500

The manager applied manufacturing overhead at a rate of $32 per direct labor-hour.

Job CD4340 required 100 direct labor-hours.

Q= 1000 pieces

Cost of goods sold= direct material + direct labor + manufacturing overhead

COGS= 3500 + 6400 + (32* 100)= $13,100

COGS unit= 13100/1000= $13.1