Question

Coronado Industries uses job order costing for its brand new line of sewing machines. The cost incurred for production during 2019 totaled $18000 of materials, $13000 of direct labor costs, and $8000 of manufacturing overhead applied. The company ships all goods as soon as they are completed which results in no finished goods inventory on hand at the end of any year. Beginning work in process totaled $12000, and the ending balance is $9000. During the year, the company completed 25 machines. How much is the cost per machine

Answer 1

Cost per machine $1,680

Step-by-step explanation:

The computation of the cost of the machine is given below:

Beginning work in process $12,000

Direct material $18,000

Direct labor $13,000

Overhead $8000

Less: Ending work in process -$9,000

Cost of goods manufactured $42,000

Divided by Unit 25

Cost per machine $1,680

hence,the same should be relevant