The Stelco Company Manufactures Microwave Ovens

Essay

The Stelco Company manufactures microwave ovens. Last year, the per-unit product cost was $56, the per-unit prime cost was $34, and the per-unit conversion cost was $42. Cost of goods sold for the year was $560,000, and the sale price per unit was $100. In addition, direct labour costs of $200,000 and selling and administrative expenses of $240,000 were incurred.
Required:
A. Calculate how many units were sold last year.
B. Calculate the cost of direct materials used.
C. Calculate the cost of manufacturing overhead.
D. Calculate the gross margin for the year.
E. Calculate operating income.