The following information was collected from the accounting records of the Part SX9 for 3,600 units: Per UnitPer Period Sales price$410

The following information was collected from the accounting records of the Part SX9 for 3,600 units: Per UnitPer Period Sales price$410 Direct Materials 80 Direct Labor 30 Overhead 50 $90,000 Marketing 15 Administrative 54,000 What is Part SX9’s total cost per unit?

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  1. Answer:

    Part SX9’s total cost per unit is 160 dollars.

    Explanation:

    This problem requires us to tell total cost per unit, As per accounting (IAS 2) standards total cost per unit is sum of direct material, direct labor and factory overhead. Selling and admin cost are not included in total cost of product/inventory.

    Detail calculation is given below.

    Direct Material   $ 80

    Direct Labor       $ 30

    Overhead           $ 50

    Total Cost          $ 160

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