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Calculate Total Product Cost

Olivia Lawnick

Created on September 2, 2025

Ch2 PPT Slide #65

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Transcript

Morning Smiles Coffee company Manufactures Stoneware French Press coffee makers for use in dorm rooms, apartments, homes and travel situations where customers desire high quality coffee in small amounts. Last week, direct materials (stoneware, paint, enamel and steel) costing $100,000 were put into production. Direct labor of $18,000 (10 workers *100 Hours*18 per hour) was incurred. Manufacturing overhead equaled $50,000. By the end of the week Morning Smiles had manufactured 2,000 Stoneware French coffee makers

Calculate Total Product Cost for last week

Direct Materials
$100,000
$18,000
Direct Labor
Mfg Overhead
$50,000
$168,000
Total Product Cost

Calculate the per unit product cost for last week

Total Product Cost
$168,000
2,000 units
Number of Units
Per Unit Product Cost
$84/unit
1st B
31st E
Total Product Cost
# of Units Produced
Direct Materials
Direct Labor
Manufacturing Overhead

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