Question

The November production of MVP’s Minnesota Division consisted of batch P25 (3,800 professional basketballs) and batch S33 (7,000 scholastic basketballs). Each batch was started and finished during November, and there was no beginning or ending work in process. Costs incurred were as follows: Direct Material: Batch P25, $133,000, including $10,500 for packaging material; batch S33, $112,000. Conversion Costs: Preparation Department, predetermined rate of $5.10 per unit; Finishing Department, predetermined rate of $4.00 per unit; Packaging Department, predetermined rate of $0.70 per unit. (Only the professional balls are packaged.)

Compute the November product cost for each type of basketball. (Round your intermediate and final answers to 2 decimal places.)

Professional per unit

Scholastic per unit

Answer 1

Material cost per unit
			Professional	Scholastic
Total Material cost		133000		112000
Divide: Units produced	3800		7000
Material cost per unit	35		16
Unit Product cost
			Professional	Scholastic
Material cost per unit	35		16
Conversion cost per unit
Prepartion department	5.1		5.1
Finishing department		4		4
Packaging department	0.7		0
Unit Product cost		44.8		25.1
Final Answer:
Professional	44.8 per unit
Scholastic		25.10 per unit