Pretty Pillows, Mfg

question 85

Essay

Pretty Pillows, Mfg., manufactures silk throw pillows. Last month the company produced 3,890 pillows. Using job order costing, determine the product unit cost for one pillow based on the following costs: production facility utilities, $1,600; depreciation on production equipment, $650; indirect materials, $400; direct materials, $5,300; indirect labor, $1,000; direct labor, $3,500; sales commissions, $4,000; president's salary, $8,000; insurance on production facility, $1,000; advertising expense, $900; rent on production facility, $6,000; rent on sales office, $4,000; and legal expense, $600. Carry your answer to two decimal places.

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Definitions:

Inter-Colonial Militia

Armed forces composed of volunteers from different colonies, created for mutual defense and protection during the early colonial period in North America.

King William's War

The North American conflict (1689-1697) between France and England that was part of the larger Nine Years' War.

Iroquois

A historically powerful northeast Native American confederacy known for its political and organizational skills, as well as its influential role in American and Canadian history.

William and Mary

A public research university in Williamsburg, Virginia, and also refers to the reign of King William III and Queen Mary II of England.