Homework Help is Here – Start Your Trial Now!
Business
Accounting
Sofea Factory manufactures key chains for college bookstores. During 2003, the company had the following costs: Direct materials used $ 31,000 Direct labour 18,000 Factory rent 12,000 Equipment deprecation – factory 2,000 Equipment depreciation – office 750 Marketing expense 2,500 Administrative expenses 40,000 35,000 units produced were in 2003. What is the product cost per unit? approximately $1.24 b. $1.80 c. approximately $3.04 d. $1.40 e. approximately $1.82

Sofea Factory manufactures key chains for college bookstores. During 2003, the company had the following costs: Direct materials used $ 31,000 Direct labour 18,000 Factory rent 12,000 Equipment deprecation – factory 2,000 Equipment depreciation – office 750 Marketing expense 2,500 Administrative expenses 40,000 35,000 units produced were in 2003. What is the product cost per unit? approximately $1.24 b. $1.80 c. approximately $3.04 d. $1.40 e. approximately $1.82

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...
See similar textbooks
icon
Related questions
Question
  1. Sofea Factory manufactures key chains for college bookstores. During 2003, the company had the following costs:

 

Direct materials used                        $   31,000
Direct labour                                        18,000
Factory rent                                         12,000
Equipment deprecation – factory           2,000
Equipment depreciation – office                750
Marketing expense                                 2,500
Administrative expenses                         40,000

 

35,000 units produced were in 2003. What is the product cost per unit?


  1. approximately $1.24
    b. $1.80
    c. approximately $3.04
    d. $1.40
    e. approximately $1.82                        
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost classification
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Financial & Managerial Accounting
Financial & Managerial Accounting
Accounting
ISBN:
9781285866307
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS