A company started and completed production of 50,000 units...

A company started and completed production of 50,000 units last month. Materials cost was $125,000, labor cost was $200,000, and $310,000 of overhead was applied to production. If there was no beginning or ending work-in-process inventory, the cost per unit produced was ________. ? $6.50 ? $10.20 ? $63.50 ? $12.70

Transcript

00:01 Okay, so we're going to be looking here at the cost of goods manufactured and the information that is given to us, which we're going to use to determine the cost of finished goods, cost of and the cost per unit.

00:19 So the first part of the information is to do with a working process, to say the opening work and process, stay is near, so which means all the activities are beginning from the start of the period without anything from a previous period.

00:40 Okay, so let's look at the finished goods, finished goods manufacture is 9 ,000, that's the information that's given, 9 ,000, and the work in process, all right, and these are in terms of units, 9 ,000 units.

01:00 And the working process is 1 ,000 units.

01:06 All right.

01:07 So, and the additional information concerning these goods that the working process is simply the direct material that have been expensed is 100 % on the working process.

01:24 But when it comes to conversion, which would want to assume is the direct lay.

01:31 Is 50%.

01:33 Okay, so it's going to take additional 50 % of labor in order to convert those goods into finished goods.

01:43 Okay, so the working process into finished goods.

01:46 The other part of the information is the direct material that is actually given it dollar terms $140 ,000.

01:55 And we have direct labor, which is basically given as 30 ,000.

02:01 $1 ,000.

02:05 Okay, so we have the manufacturing overheads given as 50 % of the direct material...

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