Answer:
$8.87
Explanation:
Given that,
Production in units = 3,000
Direct materials cost = $7,000
Direct labor cost = $10,000
Overhead cost = $9,600
Sales commission per unit sold = $4
Price per unit sold = $29
Fixed selling and administrative expense = $7,000
The total manufacturing overhead includes direct labor cost, direct material cost and overhead cost.
Total manufacturing overhead:
= Direct materials cost + Direct labor cost + Overhead cost
= $7,000 + $10,000 + $9,600
= $26,600
Therefore, the cost of goods sold per unit is determined by dividing the total manufacturing overhead by the number of units produced.
Sully's cost of goods sold per uni:
= Total manufacturing overhead ÷ Number of units produced
= $26,600 ÷ 3,000
= $8.87
