Pogue’s Pops produces a popular beverage. Operating data for October follow:
Materials $ 600,000
Labor 190,000
Manufacturing overhead 2,950,000
Pogue produced 11 million liters of the beverage in October.
| Required: |
| Compute the cost per liter of beverage produced in October. (Round your answer to 2 decimal places.) |
Answer : the cost per liter of beverage produced in October = 0.34 $ cost per liter
Working notes for the above anser is as follow
Materials $ 600,000
Labor 190,000
Manufacturing overhead 2,950,000
Pogue produced 11 million liters of the beverage in October.
Computation of the cost per liter of beverage produced in October is as under
| no | Cost | Amount in $ |
| 1 | Material | 600,000.00 |
| 2 | Labour | 190,000.00 |
| 3 | Manufacturing overhead | 2,950,000.00 |
| Total cost | 3,740,000.00 |
| Cost per unit | ||
| Total cost | 3740000 | |
| Total production (11 million) |
11000000 | |
| Per lier (3740000/11000000) |
0.34 | |
