Ross Company Makes Handbags

Essay

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.
Direct materials = 76,000
Direct labor = 57,600 (30 employees x 160 hrs.x $12 per hour)
Overhead = 80,000
Total cost 213,600