Question

ABC Company incurred the following product costs to manufacture 1,000 finished units in May. Direct materials: $2,600 Direct labor: $3,800 Manufacturing overhead: $2,200 The cost of each unit produced in May is

Answer 1

Answer:

The cost of each unit produced in May is $ 86.

Explanation:

Since ABC Company incurred the following product costs to manufacture 1,000 finished units in May: Direct materials: $ 2,600, Direct labor: $ 3,800, Manufacturing overhead: $ 2,200; To determine the cost of each unit produced in May, the following calculation must be performed:

(2600 + 3800 + 2200) / 1000 = X

8600/1000 = X

86 = X

Therefore, the cost of each unit produced in May is $ 86.