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Picture It Inc. manufactures customized wooden frames. The direct materials needed to construct the frames are wood, glass, and cardboard. Picture
It has 16 employees who work for 40 hours in a work week and are each paid $12 per hour. The company produced and sold 800 frames in the
month of September.
During the month of September the following purchases were made to produce the 800 frames:
Wood-5,000 ft. at $1.20/ft.
Glass-400 pieces at $5.60/piece
Cardboard-450 pieces at $0.50/piece
Note: Round all values to 2-decimals and then use in subsequent calculations.
1. Calculate the total product cost for the month. Assume that all employees worked for 4 weeks in September and that the company incurred
$62,120 as manufacturing overhead costs. Enter your answer to whole dollar.
101,305 X
2. Calculate the per unit cost. Enter your answer to two decimal places.
126.63 ?
3. Calculate the gross margin for the month of September assuming that the company sells each frame for $230. Enter your answer to whole
dollar.
82,695 X