Barry Pottery Supplies manufacturers supplies used during the pottery process. They have multiple processes, the first of which is Molding. The following information relates to the Molding beginning balance: 5,300 physical units $184,700 beginning cost During the period, 12,400 additional physical units are started. An additional costs of $77,900 in direct materials and $84,000 in manufacturing overhead are incurred. Additionally, 1,890 direct labor hours were incurred. Factory laborers are paid at a rate of $50 per hour. At the end of the period, 6,900 physical units remained in progress. These physical units were 60% complete. Using the information provided, calculate the total cost to produce one unit. Round your answer to two decimal places.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Barry Pottery Supplies manufacturers supplies used during the pottery process. They have multiple processes, the first of which is Molding. The following information relates to the Molding beginning balance:
- 5,300 physical units
- $184,700 beginning cost
During the period, 12,400 additional physical units are started. An additional costs of $77,900 in direct materials and $84,000 in manufacturing overhead are incurred. Additionally, 1,890 direct labor hours were incurred. Factory laborers are paid at a rate of $50 per hour.
At the end of the period, 6,900 physical units remained in progress. These physical units were 60% complete.
Using the information provided, calculate the total cost to produce one unit. Round your answer to two decimal places.
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