Pitman Chemical Company manufactures and sells Goody, a productthat sells for 10

Question

Pitman Chemical Company manufactures and sells Goody, a productthat sells for 10 per pound. The manufacturing process alsoyields 1 pound of a waste product, called Baddy, in the productionof every 10 pounds of Goody. Disposal of the waste productcosts 1 per pound. During March, the company manufactured200,000 pounds of Goody. Total manufacturing costs were asfollows:

Directmaterials                   232,000
Directlabor                        120,000
Manufacturing support costs    60,000
Totalcosts                           412,000

a. Determine the cost per pound of Goody.

Explanation / Answer

Qty of Good produced 200,000.00 Qty of Bad produced 200,000/ 10 20,000.00 Disposal Costs of Bad 20,000*1 Disposal Costs of Bad 20,000.00 Add: Total manufacturing Costs 412,000.00 Total Costs 432,000.00 Cost per Pound 432,000 / 200,000 2.16

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---