Question

On March 1, Job 10 had a beginning balance of $500. During March, direct materials of $800 and direct labor of $300 were added to the job. Overhead is applied to production at a rate of 40% of direct labor. There are 4 units in Job 10. What is the unit cost?

Answer 1

Answer:

Total Unit cost            430  $/Unit

Explanation:

ALCULATE UNIT COST :

AMOUNT

Beginning work in process  500

Direct material                  800

Direct labour                          300

Overhead (300*40%)          120

Total cost of job                  1720

Units                                   4

Unit cost                                  430