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Homework answers / question archive / Wilson Company has a pre-determined overhead rate of $5 per direct labor hour
Wilson Company has a pre-determined overhead rate of $5 per direct labor hour. The job-order cost sheet for Job 145 shows 800 direct labor hours costing $14,000 and materials requisitions totaling $27,000. Job 145 had 1,000 units completed and transferred to Finished Goods.
What is the cost per unit for Job 145?
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|
Particulars |
Amount |
|
Direct Material |
$27,000 |
|
Direct labour |
$14,000 |
|
Prime Cost |
$41,000 |
|
Add: Overheads (800 labour hours * $5) |
$4,000 |
|
Total Cost |
$45,000 |
|
Units completed and transferred to finished goods |
1,000 |
|
Cost per unit (Total cost / Units completed and transferred to finished goods) |
$45 |
There for the cost per unit is $45
