Answer:
Unitary cost of goods sold= $5.95
Explanation:
Giving the following information:
direct materials= $13,200
direct labor= $4,900
Job ICU2 required 800 machine hours.
Factory overhead was applied to the job at a rate of $25 per machine hour.
The cost of goods sold is calculated using the direct material, direct labor, and applied factory overhead.
First, we need to calculate the allocated overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 25*800= 20,000
Now, we need to calculate the cost of goods sold per unit:
Total cost= 13,200 + 4,900+ 20,000= 38,100
Unitary cost= 38,100/6,400= $5.95
Unitary cost of goods sold= $5.95
