The Montreal Manufacturing Company incurred the following costs for the month o

The Montreal Manufacturing Company incurred the following costs for the month of June:

Materials used:

Direct materials

$6600

Indirect materials

1200

Payroll costs incurred:

Direct labor

6000

Indirect labor

1700

Salaries:

Production

2400

Administration

5100

Sales

3200

Other costs:

Building rent (production uses one-half of the building space)

1400

Rent for molding machine (*per month plus $0.50 per unit produced)

400*

Royalty paid for the use of production patents

(calculation based on units produced $0.80 per unit) Indirect miscellaneous costs:

Production

2700

Sales and administration

1800

The beginning work-in-process inventory was $6000; the ending work-in-process inventory was $5000. Assume that 1000 units were produced during the
month.

1. Prepare a statement of cost of goods manufactured for the month.

2. Compute the cost to manufacture one unit of product.

(CMA adapted)