Computation of Product Unit Cost
Computation of Product Unit Cost
Arch Corporation manufactures specialty lines of women’s apparel. During February, the company worked on three special orders: A-25, A-27, and B-14. Cost and production data for each order are as follows:
| Job A-25 | Job A-27 | Job B-14 | |
| Direct materials | |||
| Fabric Q | $10,840 | $12,980 | $17,660 |
| Fabric Z | 11,400 | 12,200 | 13,440 |
| Fabric YB | 5,260 | 6,920 | 10,900 |
| Direct labor | |||
| Garment maker | 8,900 | 10,400 | 16,200 |
| Layout | 6,450 | 7,425 | 9,210 |
| Packaging | 3,950 | 4,875 | 6,090 |
| Overhead | |||
| (120% of direct labor costs) | ? | ? | ? |
| Number of units produced | 700 | 775 | 1,482 |
1. Compute the total cost associated with each job. Show the subtotals for each cost category.
2. Compute the product unit cost for each job. (Round your computations to the nearest cent.)
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