Question

How much is the cost per machine?

Concord Corporation uses job order costing for its brand new line of sewing machines. The cost incurred for production during 2019 totaled $11000 of materials, $7000 of direct labor costs, and $4000 of manufacturing overhead applied. The company ships all goods as soon as they are completed which results in no finished goods inventory on hand at the end of any year. Beginning work in process totaled $8000, and the ending balance is $5000. During the year, the company completed 25 machines. How much is the cost per machine? 0 $760 $1200 оооо O $880 O $1000

Answer 1

Answer:
4)
Particulars	Amount (in $ )
Beginning Work in Process	$ 8,000
Add: Materials	$ 11,000
Add: Direct Labor Costs	$ 7,000
Add: Applied Manufacturing Overhead	$ 4,000
Cost of goods work in Process	$ 30,000
Less : Ending Work in Process	($ 5,000)
Cost of goods manufactured	$ 25,000
Cost per machine     = Cost of goods manufactured / No. of machine      =   $ 25,000 / 25	$ 1,000
Option (d) is Correct