Ask Question
3 July, 00:57

London Ceramics makes custom ceramic tiles. During March, the company started and finished Job #266. Job #266 consists of 2,500 tiles; each tile sells for $12.00. The company's records show the following direct materials were requisitioned for Job #266. Basic terra cotta tiles: 2,500 units at $4.00 per unit Specialty paint: 5 quarts at $7.00 per quartHigh gloss glaze: 4 quarts at $12.00 per quartLabor time records show the following employees worked on Job #266:Alice Cooper: 18 hours at $24 per hour Matthew Kline: 20 hours at $13 per hourSierra Ceramics allocates manufacturing overhead at a rate of $27 per direct labor hour. What is the gross profit per tile on Job #266?

+2
Answers (1)
  1. 3 July, 02:48
    0
    Gross profit per unit = $7.28

    Explanation:

    Giving the following information:

    Job #266 consists of:

    2,500 tiles; each tile sells for $12.00.

    The following direct materials were requisitioned for Job #266:

    Basic terra cotta tiles: 2,500 units at $4.00 per unit

    Specialty paint: 5 quarts at $7.00 per quart

    High gloss glaze: 4 quarts at $12.00 per quart

    Labor time records show the following employees worked on Job #266:

    Alice Cooper: 18 hours at $24 per hour

    Matthew Kline: 20 hours at $13 per hour

    Sierra Ceramics allocates manufacturing overhead at a rate of $27 per direct labor hour.

    Gross profit = Sales - direct materials - direct labor - manufacturing overhead

    Sales = 2500*12 = $30,000

    Direct materials:

    Basic terra cotta tiles: 2,500*$4.00 = $10,000

    Specialty paint: 5*$7.00 = $35

    High gloss glaze: 4*$12.00 = $48

    Total = $10.083

    Direct labor:

    Alice Cooper: 18*$24 = $432

    Matthew Kline: 20*$13 = $260

    Total = $692

    Manufacturing overhead = $27*38hours = $1026

    Gross profit = 30000 - 10083 - 692 - 1026 = $18,199

    Gross profit per unit = 18199/2500 = $7.28
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “London Ceramics makes custom ceramic tiles. During March, the company started and finished Job #266. Job #266 consists of 2,500 tiles; each ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers