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Job Order Costing Class Problem. Answer

Job Order Costing Class Problem. Answer - rent on...

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ACII Class Problem Job Order Ccosting 1. Teddy's To Hug, produces Teddy Bears for heart patients. Last month the company produced 5,000 bears. Using job order costing, determine the product unit cost for one bear based on the following costs: production facility utilities, $600; depreciation on production equipment, $550; indirect materials, $450; direct materials, $1,300; indirect labor, $900; direct labor, $2,500; sales commissions, $3,000; president's salary, $5,000; insurance on production facility, $700; advertising expense, $600;
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Unformatted text preview: rent on production facility, $5,000; rent on sales office, $3,000; and legal expense, $300. Carry your answer to two decimal places. Correct Answer: $2.40 Job Costs: Direct Materials $ 1,300 Direct Labor 2,500 Overhead: Production facility utilities $ 600 Depreciation on production equipment 550 Indirect materials 450 Indirect labor 900 Insurance on production facility 700 Rent on production facility 5,000 8,200 Total cost $12,000 Product unit cost: Total cost / Number of units produced ($12,000 / 5,000) $2.40...
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