Question-pitman chemical company


Pitman Chemical Company manufactures and sells Goody, a product that sells for $10 per pound. The manufacturing process also yields 1 pound of a waste product, called Baddy, in the production of every 10 pounds of Goody. Disposal of the waste product costs $1per pound. During March, the company manufactured 200,000 pounds of Goody. Total manufacturing cots were as follows:

Direct materials                       $232,000

Direct labor                                120,000

Manufacturing support cost         60,000

Total costs                                $412,000

Determine the cost per pound of Goody.

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