Cost Definitions Wyandotte Company provided the following in

Cost Definitions Wyandotte Company provided the following information for the last calendar year Beginning inventory Direct materials Work in process Ending inventory: $25,900 44,700 Direct materials $18,000 Work in process 22,700 During the year, direct materials purchases amounted to $256,900, direct labor cost was $176,000, and overhead cost was $308,400. There were 40,000 units produced. e here to search

Solution

Answer 3.

Unit Manufacturing Cost = Direct Materials per unit + Direct Labor per unit + Overhead Cost per unit
$19.28 = $6.62 + Direct Labor per unit + $7.71
Direct Labor per unit = $4.95

Prime Cost per unit = Direct Materials per unit + Direct Labor per unit
Prime Cost per unit = $6.62 + $4.95
Prime Cost per unit = $11.57

Conversion Cost per unit = Direct Labor per unit + Overhead Cost per unit
Conversion Cost per unit = $4.95 + $7.71
Conversion Cost per unit = $12.66