Answer:
a. Total manufacturing cost is $37,000
b. Unit product cost is $37 per unit
Explanation:
The total manufacturing cost is the sum of the direct and indirect costs. The indirect costs are also known as overheads.
Given that the job cost sheet for Job 313 includes $10,000 in direct materials cost and $12,000 in direct labor cost,
Total direct cost = $10,000 + $12,000
= $22,000
Also given that the Company assigns overhead cost to Jobs on the basis of 125% of direct labor cost
Total overheads = 125% * $12,000
= $15,000
Hence total manufacturing cost
= $22,000 + $15,000
= $37,000
Given that 1,000 units were produced,
Unit cost = $37,000/1000
= $37 per unit
