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pts po?šlb 35 of 55 (0 complete)This Test: 150 Jabari Manufacturing, a widgets m

ID: 2404094 • Letter: P

Question

pts po?šlb 35 of 55 (0 complete)This Test: 150 Jabari Manufacturing, a widgets manufacturing company, divides its production operations into three es-Department 1, Department 2, and Department 3. The company uses a process costing system. Jabari incurred the following costs during the year to produce 4,900 units: Department 1 Department 2 Department 3 $17,000 $10,000 $7,000 If Jabari could sell only 3,800 units during the year, what will be the cost per unit of widget produced? (Round your answer to the nearest cent.) OA. $6.94 O B. $3.47 C. $5.51 O D. $8.95

Explanation / Answer

A. $6.94

Total cost to produce 4,900 units = $17,000 + $10,000 + $7,000 = $34,000

Cost per unit = $34,000 / 4,900 = $6.94