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

Cost of goods sold (unitary)= $13.1

Step-by-step explanation:

Giving the following information:

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.

100*32= 3200

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

direct labor $6,400.

MOH= 3200

Total= $13,100

Cost of goods sold (unitary)= 13100/1000= $13.1