COST DEFINITIONS
Labrador Company provided the following information for the past calendar year:
|
Beginning Inventory
|
|
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Direct Materials
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$ 56,800
|
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Work in Process
|
34,700
|
|
Ending
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|
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Direct Labor
|
31,000
|
|
Work in Process
|
29,700
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During the year, direct materials purchases amounted to $160,200, direct labour cost was $225,600, and overhead cost was $308,400. There were 10,000 units produced.
Required:
1. Calculate the total cost of direct materials used in production.
2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost.
3. Of the unit manufacturing cost calculated in Requirement 2, $18.60 is direct materials and $30.85 is overhead. What is the prime cost per unit? Conversion cost per unit?