1.
Help me on question 6. All the below answers are correct but I do not know how to do queston 6.
T-Accounts; Financial Statements [LO1, LO2, LO3, LO4, LO5, LO6, LO7] Southworth
Company uses a job-order costing system and applies manufacturing overhead cost to jobs on the
basis of the cost of direct materials used in production. Its predetermined overhead rate was
based on a cost formula that estimated $248,000 of manufacturing overhead for an estimated
allocation base of $155,000 direct material dollars.
Solution
Hi,
Please find the detailed answer as follows:
Unit Price = (3600 + 500*14 + 3600*1.60)/600 = 27.27*(1+.75) = 47.72
Answer is 47.72.
Thanks.