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15 February, 20:43

Enviro Corporation manufactures a special liquid cleaner at its Green plant. Operating data for June follow: Materials $ 438,000 Labor 42,000 Manufacturing overhead 234,000 The Green plant produced 1,700,000 gallons in June. The plant never has any beginning or ending inventories. Required: Compute the cost per gallon of liquid cleaner produced in June. (Round your answer to 2 decimal places.)

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  1. 15 February, 21:31
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    The cost per gallon of liquid cleaner produced in June is $0.42

    Explanation:

    The computation of the cost per gallon is shown below:

    = (Total cost : number of gallons produced)

    where,

    Total cost = Materials cost + Labor cost + Manufacturing overhead cost

    = $438,000 + $42,000 + $234,000

    = $714,000

    And, the number of gallons produced is 1,700,000 gallons

    Now put these values to the above formula

    So, the value would equal to

    = $714,000 : 1,700,000 gallons

    = $0.42
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