Wilson Company has a pre-determined overhead rate of $5 per direct labor hour

Accounting Sep 19, 2020

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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Expert Solution

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

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