Question

Dobosh Corporation has provided the following information:

• Direct materials $7.05 per unit
• Direct labor $3.65 per unit
• Variable manufacturing overhead $1.60 per unit
• Fixed manufacturing overhead $113,400 per period
• Sales commissions $1.50 per unit
• Variable administrative expense $0.55 per unit
• Fixed selling and administrative expense $36,450 per period

Required:

a. For financial reporting purposes, what is the total amount of product costs incurred to make 8,000 units?

b. For financial reporting purposes, what is the total amount of prime costs incurred to sell 8,000 units?

c. If 8,000 units are sold, what is the total amount of conversion costs incurred? (1 Mark)

Answer 1