Homework SourseInformation from the records of the Conundrum Company for Se
Information from the records of the Conundrum Company for September 2018 was as follows:
Conundrum Corporation produced 20,000 units.
The prime costs per unit for September were
a.$7.05
b.$8.8125
c.$20.00
d.$14.7375
| Sales | $307,500 |
| Selling and administrative expenses | 52,500 |
| Direct materials used | 66,000 |
| Direct labor | 75,000 |
| Variable factory overhead | 50,000 |
| Factory overhead | 51,250 |
Solution
a. $7.05
The prime costs per unit for September were:
= ($66,000 + $75,000) / 20,000 units
= $141,000 / 20,000 units
= $7.05 per unit
