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Sara's Sodas produces a popular soft drink

Accounting Nov 12, 2020

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.)

Expert Solution

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

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