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    pamirene022 Posts: 2, Reputation: 1
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    Jan 25, 2011, 09:23 AM
    What is the average cost per unit of direct materials?
    Assume that the company produced the equivalent of 10000 units of product during the year just completed. What was the average cost per unit for direct materials? What was the average cost per unit for fiexed manufacturing overhead? Note: of the $105,000 of manufacturing overhead, $15000 is variable and $90000 is fixed.

    Finished goods inventory $20,000
    Finished goods inventory, ending $40,000
    Administrative expenses $110,000
    Manufacturing overhead $105,000
    Purchases of raw materials $125,000
    Raw materials inventory beginning $9,000
    Raw materials inventory ending $6,000
    Direct labor $70,000
    Work process inventory, beginning $17,000
    work process inventory, ending $30,000
    Sales $500,000
    Selling expenses $80,000

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