Gizmo Manufacturer, a widgets manufacturing company, divides its production oper

Question

Gizmo Manufacturer, a widgets manufacturing company, divides its production operations into three processes—Department 1, Department 2, and Department 3. The company uses a process costing system. Gizmo incurred the following costs during the year to produce 4,200 units:

If Gizmo could sell only 3,600 units in during the year, what will be the cost per unit of widget produced? (Round your answer to the nearest cent.)

Select one:

A. $8.33

B. $9.72

C. $6.43

D. $4.29

Explanation / Answer

The cost per unit of widget produced = Total costs / Number of units produced

Total Costs = 18000 + 9000 + 8000

= $ 35000

Number of units of widget produced = 4200 (Given in question)

Thus,the cost per unit of widget produced = 35000 / 4200 = $ 8.33

Conclusion:- The cost per unit of widget produced = $ 8.33 [ Option A].

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.