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Frozen Products Inc
Frozen Products Inc. incurred the following costs during December related to the production of its 100,000 frozen ice cream cone specialty? items:
What is the per unit inventory cost allocated to the? company's frozen ice cream cone specialty items for December?? ?(Round your answer to the nearest? cent.)
Requirements:
Food product labor $195,000
Ice cream cone ingredients $335,000
Sales and marketing costs $30,000
Factory overhead $18,000
Normal food spoilage $4,000
Abnormal spoilage $3,000
Expert Solution
Computation of the per unit inventory cost:-
Total cost = Food product labor + Ice cream cone ingredients + Factory overhead + Normal food spoilage
= $195,000 + $335,000 + $18,000 + $4,000
= $552,000
Cost per unit = Total cost / Number of units produced
= $552,000 / 100,000
= $5.52 per unit
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