The Montreal Manufacturing Company incurred the following costs for the month of June:
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Materials used:
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Direct materials
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$6,600
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Indirect materials
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1,200
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Payroll costs incurred:
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Direct labor
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6,000
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Indirect labor
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1,700
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Salaries:
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Production
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2,400
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Administration
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5,100
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Sales
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3,200
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Other costs:
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Building rent (production uses one-half of the building space)
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1,400
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Rent for molding machine (*per month, plus $0.50 per unit produced)
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400*
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Royalty paid for the use of production patents
(calculation based on units produced, $0.80 per unit) Indirect miscellaneous costs:
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|
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Production
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2,700
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Sales and administration
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1,800
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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.