Ross Company Makes Handbags

question 214

Short Answer

Ross Company makes handbags. Last month direct materials (leather, thread, zippers, decorative accents) costing $76,000 were put into production. Ross had 30 workers, each worked 160 hours this month and each are paid $12 per hour. Overhead equaled $80,000 for the period. Ross Company produced 40,000 handbags as of the end of the month.
Required: Calculate the total product cost for the month and calculate the cost of one handbag that was produced.

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Definitions:

Record on Appeal

A complete collection of all documents, evidence, and transcripts from a trial court that are presented to an appellate court for review.

Clerk of the Court

An officer who manages the clerical operations and keeps records for a court.

Preponderance of the Evidence

The standard of proof in most civil cases, requiring that the argument that's more convincing and has greater weight wins.

Scintilla of Evidence

A very small amount of proof that may suggest something is true but does not guarantee its truth.