Question

Bramble Corp. uses job order costing for its brand new line of sewing machines. The cost incurred for production during 2019 totaled $23000 of materials, $15000 of direct labor costs, and $14000 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 $20000, and the ending balance is $14000. During the year, the company completed 25 machines. How much is the cost per machine?

Answer 1

the cost per machine is $2,320.

Step-by-step explanation:

Prepare a Manufacturing Schedule to determine the Cost of Goods Manufactured.

Manufacturing Schedule

Direct Materials $23,000

Direct labor costs $15,000

Manufacturing overhead applied $14,000

Add Beginning work in process $20,000

Less Closing work in process ($14,000)

Total Cost of Machines Manufactured $58,000

Therefore,

Cost per machine = Total Cost / Number of Machines completed

= $58,000 / 25 machines

= $2,320