Managerial Accounting

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Driggers: Figure Cost Per Units From Manufacturing Activity


Driggers Inc. would like you to figure out their cost per unit for the units produced last month. All units were completed during the period.

Information for recent month:
Raw materials Inventory, beginning balance \$15,000
Work-In-Process Inventory, beginning balance \$26,000
Finished Goods Inventory, beginning balance \$30,000
Purchases of raw materials \$300,000
Raw materials Inventory, ending balance \$6,000
Factory occupancy costs \$45,000
Direct labor payroll \$100,000
Indirect materials used \$10,000
Other manufacturing overhead \$56,000
units produced 10,000
units sold 9,000