Question

ACME Company manufactures a specialty line of lamps. The company uses a job-order costing system. During the month, the following costs were incurred on Job 1041: direct materials $54,800 and direct labor $19,200. In addition, selling costs of $9,658 were incurred on the job. Manufacturing overhead was applied at the rate of $25 per machine-hour (MH) and Job 1041 required 320 MHs. If Job 1041 consisted of 8,280 lamps, the cost of goods sold per lamp was:

Answer 1

Cost of goods sold per lamp= $9.90

Direct material	$      54,800.00
Direct labor	$      19,200.00
Manufacturing Overheads applied ($25 x 320)	$        8,000.00
Total Manufacturing Cost incurred	$      82,000.00
Total Lamps in Job 1041	8280
Cost per lamp (82000/8280)	$     9.90

Selling cost is not a product cost hence it will not be considered while calculation cost of goods sold per lamp

It is assumed that all units are sold