Question

Jabari Manufacturing, 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. Jabari incurred the following costs during the year to produce 4800 units: Department 1 $17,000 Department 2 $7000 Department 3 $10,000 If Jabari could sell only 3100 units during the year, what will be the cost per unit of widget produced? (Round your answer to the nearest cent.) A) $10.97 B) $5.00 C) $7.08 D) $3.54

Answer 1

Answer:

C)$7.08

Explanation:

Calculation for what will be the cost per unit of widget produced

First step is to calculate the Total cost of production

Total cost of production= $17,000 + $7,000 + $10,000

Total cost of production= $34,000

Now let calculate the Cost per unit of widget produced

Cost per unit of widget produced= $34,000/4,800 units

Cost per unit of widget produced=$7.08

Therefore what will be the cost per unit of widget produced is $7.08