Final answer:
To calculate the prime cost per unit, the total prime cost, which is the sum of direct materials and direct labor, is divided by the number of units manufactured. For Proton Company, this calculation comes to $5 per unit.
Step-by-step explanation:
The student has asked for assistance in calculating the prime cost per unit for the Proton Company for a specific period. Prime cost refers to the combined direct costs of production namely, direct materials and direct labor, but does not include manufacturing overhead. In this scenario, the direct materials cost is $40,000, and the direct labor cost is $20,000. To find the prime cost per unit, we sum these two costs and then divide by the number of units manufactured.
Calculating this gives us:
Total Prime Cost = Direct Materials + Direct Labor
Total Prime Cost = $40,000 + $20,000
Total Prime Cost = $60,000
To find the prime cost per unit, we divide the total prime cost by the number of units:
Prime Cost Per Unit = Total Prime Cost / Number of Units
Prime Cost Per Unit = $60,000 / 12,000 Units
Prime Cost Per Unit = $5