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Homework answers / question archive / Sara's Sodas produces a popular soft drink
Sara's Sodas produces a popular soft drink. Operating data for January follow:
Materials $710,000
Labor 260,000
Manufacturing overhead 2,950,000
Sara's Sodas produced 14 million liters of the beverage in January.
Required:
Compute the cost per liter of beverage produced in January. (Round your answer to 2 decimal places.)
Computation of Cost per Liter of Beverage Produced in January:
Total Manufactuing Cost = Material +Labor + Manufactuing overhead
= $710,000 + $260,000 + $2,950,000
= $3,920,000
Cost Per Liter = $3,920,000 /14,000,000 = $0.28 Per Leter
