Question

Prime Cost and Conversion Cost Slapshot Company makes ice hockey sticks. Last week, direct materials (wood, paint, Kevlar, and resin) costing $23,000 were put into production. Direct labor of $28,000 (10 workers x 100 hours x $28 per hour) was incurred. Manufacturing overhead equaled $56,000. By the end of the week, the company had manufactured 2,800 hockey sticks.1.Calculate the total prime cost for last week.

$
2. Calculate the per-unit prime cost. Round your answer to the nearest cent.
$ per unit
3. Calculate the total conversion cost for last week.
$
4. Calculate the per-unit conversion cost. Round your answer to the nearest cent.
$ per unit

Answer 1

1. $51,000

2. $18.21

3. $84,000

4. $30

Step-by-step explanation:

1. Total prime cost:

= Direct material + Direct labor

= $23,000 + $28,000

= $51,000

2. per-unit prime cost:

= Total prime cost ÷ No. of units produced in week

= $51,000 ÷ 2,800

= $18.21

3. Total conversion cost for last week:

= Direct labor + Manufacturing overhead

= $28,000 + $56,000

= $84,000

4. per-unit conversion cost:

= Total conversion cost ÷ No. of units produced in week

= $84,000 ÷ 2,800

= $30