Question

J​ & S Manufacturing expects to produce and sell 12 comma 500 units of​ Big, its only​ product, for​ $20 each. Direct material cost is $ 4 per​ unit, direct labor cost is $ 11 per​ unit, and variable manufacturing overhead is $ 9 per unit. Fixed manufacturing overhead is $ 25 comma 000 in total. Variable selling and administrative expenses are $ 3 per​ unit, and fixed selling and administrative costs are​ $3,000 in total. According to generally accepted accounting​ principles, inventoriable cost per unit of Big would be

Answer 1

Answer:

$26

Explanation:

The computation of the inventoriable cost per unit is shown below;

Direct material per unit                                       $4

Direct labor per unit                                            $11

Variable manufacturing overhead per unit         $9

Fixed manufacturing overhead per unit              $2  ($25,000 ÷ 12,500 units)

Inventoriable cost per unit                                   $26

In order to find out we simply added the direct materiel per unit, direct labor per unit, variable manufacturing overhead per unit and fixed manufacturing overhead per unit