Book Product Cost in Total and Per Unit Grin Company manufactures digital camera
ID: 2331428 • Letter: B
Question
Book Product Cost in Total and Per Unit Grin Company manufactures digital cameras. In January, Grin produced 7,250 cameras with the following costs Direct materials Direct labor Manufacturing overhead There were no beginning or ending inventories of WIP Requireds $640,000 128,000 512,000 1. What was the total product cost in January? K2. What was the product cost per unit in January? Round your answer to the nearest cent. ) , per unit 1. The total of direct and indirect cost associated with producing or acquiring a product and preparing it for sale. 2. Divide total product costs by the number of units produced
Explanation / Answer
Calculation of total product cost:-
Direct costs-
Direct Material - $640000
Direct Labour - $128000
Indirect Costs -
Manufacturing overhead:- $512000
Total Production cost - $1280000
Per unit cost:- total cost/number of units
= $1280000/7250
= $176.55