Question

Jennifer is currently working on assembling some numbers for her client's cost accounting practices for the current year. The client is a factory that produces condiments including ketchup and mustard. It uses traditional costing, and Jennifer would like to calculate total cost per unit. The client has the following costs (same for both condiments): Direct Materials (DM), 90160; Direct Labor (DL),94500; and their Manufacturing Overhead (MOH) will be ________.

Answer 1

To calculate the total cost per unit in cost accounting practices, the direct materials and direct labor costs are added together, and the manufacturing overhead (MOH) is determined. However, in this case, the MOH is missing, so Jennifer will need more information from her client to calculate the total cost per unit.

Step-by-step explanation:

Total costs in cost accounting practices are the sum of direct materials (DM), direct labor (DL), and manufacturing overhead (MOH). To calculate the total cost per unit, we add up the costs of DM and DL and then determine the MOH. In this case, Jennifer has the costs for DM and DL, but not MOH.

The MOH is the indirect costs of production that cannot be easily traced back to specific products. It includes costs like factory rent, utilities, and depreciation of machinery. Jennifer will need to gather additional information from her client to determine the MOH and calculate the total cost per unit.