ACC120 Accounting FINAL EXAM-Section1/10/2018 Mildred-Elley NYC Metro Campus NAM

Question

ACC120 Accounting FINAL EXAM-Section1/10/2018 Mildred-Elley NYC Metro Campus NAME: Instructor: Hadley Benoit Please answer ALL questions. Choose the best answer for each question. Show W ork for partial cred 1) Peterson Enterprises manufactures picture frames. Its production operations are divided into two d system. Peterson incurred the followi Assembly and Finishing. The company uses a process costing year to produce 5,500 picture frames: (10 Points) $9,800 $4,500 ssembly Finishing If Peterson can only sell 5,800 picture frames during the year, what will be the cost per unit of the produced? (Round your answer to the nearest cent.) A) $1.97 B) $1.75 C) $2.60 ) $1.69

Explanation / Answer

In the above case.

Let us try to find out the cost per unit of Assembly and Cost of finishing per unit basis

Cost of Assembly per unit = 9800/5500 = 1.7818

Cost of Finishing Per unit = 4500/5500 = 0.8181

A finished product has to pass through both the processes. Therefore the total cost would be inclusive of both the processes.

Total cost per unit = 1.7818 + 0.8181 = $2.60 per unit

The correct option is option (C) = $ 2.60 per unit.

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