Question

Enviro Corporation manufactures a special liquid cleaner at its Green plant. Operating data for June follow:...

Enviro Corporation manufactures a special liquid cleaner at its Green plant. Operating data for June follow:

Materials $ 484,000
Labor 47,000
Manufacturing overhead 234,000


The Green plant produced 1,700,000 gallons in June. The plant never has any beginning or ending inventories.

Required:

Compute the cost per gallon of liquid cleaner produced in June. (Round your answer to 2 decimal places.)

Cost per gallon?

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Answer #1

Cost per gallon = Total cost / Total gallons

= ($484,000 + $47,000 + $234,000) / 1,700,000

= $0.45

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