Direct Materials Cost, Prine Cost, Conversion Cost, Cost of Goods Marufactured Eilerson Company provided the folowing information for the last calendar year Beginning inventory Direct materials $67,000 Work in process 29,400 Finished goods 43,200 Ending inventory: Direct materials $70,400 Work in proces 40,000 Finished goods 42,100 During the year, direct materials purchases amounted to $275,000, drect labor cost was $189,000, and overhead cost was $525,000. During the year 100,000 units were completed Required 1. Calculate the total cost of direct materials used in production 2. Caloulate the cost of goods manufactured. Calculate the unit manufacturing cost. Round your answer to the nearest cent per unit 3. of the unt manufacturing cost calculated in Requirement 2, $2.60 is direct materials and $5.20 is overhead. Round your answers to the nearest cent What is the prime cost per unit? Check My Work Assignment Score: 81.38% All work saved. Frrall ini Type here to search W Calculate the unit manufacturing cost. Round your answer to the nearest cent. per unit 3. Of the unit manufacturing cost calculated in Requirement 2, $2.60 is direct materials and $5.20 is overhead. Round your answers to the nearest cent. What is the prime cost per unit? per unit What is the conversion cost per unit? per unit Check My Work Assignment Score: 81.38 % All work saved. Type here to search W

Name: Techwhiff
Address: 1520 Lavalette Ave, Elkins, WV 26241, USA, Elkins, 26241, US
Telephone: +1 681-298-8325
Price range: 10000

1) Beginning stock of D.M $ 67,000.00 Add: Purchases made $ 275,000.00 Less: Ending stock of D.M $ (70,400.00) Total cost of D.M used in prod. $ 271,600.00 2) Schedule of Cost of Goods Manufactured Total cost of D.M used in prod. $ 271,600.00 Direct Labor cost $ 189,000.00 OH cost $ 525,000.00 Total manufacturing costs $ 985,600.00 Add: Opening WIP $ 29,400.00 $ 1,015,000.00 Less: Ending WIP $ (40,000.00) Cost of Goods Manufactured $ 975,000.00 3) Total manufacturing costs $ 985,600.00 No. of units completed 100000 Manufacturing cost per unit $ 9.86 As per the question, Manufacturing Cost per unit $ 9.86 Direct Material cost per unit $ 2.60 OH cost per unit $ 5.20 Direct Labor cost per unit $ 2.06 ($ 9.86 - $ 2.6 - $ 5.2) Prime Cost per unit = Direct Material + Direct Labor = $ 2.60 + $ 2.06 = $ 4.66 Conversion cost p.u = Direct labor + OH = $ 2.06 + $ 5.20 = $ 7.26 Just let me know if you find any solution incorrect.

Direct Materials Cost, Prine Cost, Conversion Cost, C…

Answers

1)		Beginning stock of D.M	$ 67,000.00
	Add:	Purchases made	$ 275,000.00
	Less:	Ending stock of D.M	$ (70,400.00)
		Total cost of D.M used in prod.	$ 271,600.00

2)	Schedule of Cost of Goods Manufactured

	Total cost of D.M used in prod.	$ 271,600.00
	Direct Labor cost	$ 189,000.00
	OH cost	$ 525,000.00
	Total manufacturing costs	$ 985,600.00
Add:	Opening WIP	$ 29,400.00
		$ 1,015,000.00
Less:	Ending WIP	$ (40,000.00)
	Cost of Goods Manufactured	$ 975,000.00

3)	Total manufacturing costs	$ 985,600.00
	No. of units completed	100000
	Manufacturing cost per unit	$ 9.86

As per the question,

Manufacturing Cost per unit		$ 9.86
Direct Material cost per unit		$ 2.60
OH cost per unit		$ 5.20
Direct Labor cost per unit		$ 2.06	($ 9.86 - $ 2.6 - $ 5.2)


Prime Cost per unit	=	Direct Material + Direct Labor
	=	$ 2.60 + $ 2.06
	=	$ 4.66

Conversion cost p.u	=	Direct labor + OH
	=	$ 2.06 + $ 5.20
	=	$ 7.26

Just let me know if you find any solution incorrect

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