EXERCISE 2-13 (15 MINUTES)

4. Direct materials:

Unit cost: $12.80 (unchanged)

Total cost: 15,000 units × $12.80 per unit = $192,000.

Factory Depreciation:

Unit cost: $27,000 ÷ 15,000 units = $1.80 per unit.

Total cost: $27,000 (unchanged)