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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
DIRECT MATERIALS COST, PRIME COST, CONVERSION COST, COST OF GOODS MANUFACTURED
Tremblay Company provided the following information for the past calendar year:

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During the year, direct materials purchases amounted to $125,000, direct labour cost was $320,000, and overhead cost was $490,000. During the year, 50,000 units were completed.
Required:
1. Calculate the total cost of direct materials used in production.
2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost.
3. Of the unit manufacturing cost calculated in Requirement 2, $3.20 is direct materials and $9.80 is overhead. What is the prime cost per unit? Conversion cost per unit?
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