Q20E_2 Preparing a schedule of cost of ... [FREE SOLUTION]

Chapter 16: Q20E_2 (page 891)

Preparing a schedule of cost of goods manufactured Wilson Corp., a lamp manufacturer, provided the following information for the year ended December 31, 2018:
Balances: Beginning Ending
Direct Materials $ 59,000 $ 23,000
Work-in-Process Inventory 109,000 62,000
Finished Goods Inventory 41,000 44,000
Other information:
Depreciation, plant building and equipment $ 16,000
Direct materials purchases 151,000
Insurance on plant 24,000
Sales salaries 47,000
Repairs and maintenance鈥攑lant 10,000
Indirect labor 39,000
Direct labor 121,000
Administrative expenses 60,000
Requirements 2. What is the unit product cost if Wilson manufactured 3,700 lamps for the year?

Expert verified

The unit product cost is computed as $131.89 as per the requirement.

Particulars	Amount ($)
Cost of goods manufactured	$444,000
Add: Opening finished goods	$41,000
Less: Closing finished goods	$44,000
Cost of goods sold	$441,000
Selling and distribution cost	$47,000
Cost of sales	$488,000

$Unit Product cost = \frac{Cost of sales}{Number of units manufactured} = \frac{$ 488, 000}{3, 700} = $ 131.89$

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