The Montreal Manufacturing Company incurred the following costs for the month of June:
|
Materials used: |
|
|
Direct materials |
$6,600 |
|
Indirect materials |
1,200 |
|
Payroll costs incurred: |
|
|
Direct labor |
6,000 |
|
Indirect labor |
1,700 |
|
Salaries: |
|
|
Production |
2,400 |
|
Administration |
5,100 |
|
Sales |
3,200 |
|
Other costs: |
|
|
Building rent (production uses one half of the building space) |
1,400 |
|
Rent for molding machine (*per month, plus $0.50 per unit produced) |
400* |
|
Royalty paid for the use of production patents (calculation based on units produced, $0.80 per unit) Indirect miscellaneous costs: |
|
|
Production |
2,700 |
|
Sales and administration |
1,800 |
The beginning work in process inventory was $6,000; the ending work in process inventory was $5,000. Assume that 1,000 units were produced during the month.
1. Prepare a statement of cost of goods manufactured for the month.
2. Compute the cost to manufacture one unit of product.
(CMA, adapted)