instructions I help Question 8 (of 22) Save & Exit Submit Time remaining: 1:38:1

Question

instructions I help Question 8 (of 22) Save & Exit Submit Time remaining: 1:38:14 During its first year of operations, Beta Company paid $51,640 for direct materials and $19,800 in wages for production workers. Lease payments and utilities on the production facilities amounted to $8,800. General, selling, and administrative expenses were $9,800. The company produced 6,800 units and sold 5,800 units for $16.80 a unit. The average cost to produce one unit is which of the following amounts? (Round your final answer to 2 decimal places.) O $11.80 o $13.24 O $13.83 $10.42

Explanation / Answer

$ Direct materials 51640 Wages for production workers 19800 Lease payment & utilities on the production facilities 8800 Total production costs 80240 Total production units                 6,800 Average cost to produce one unit (80240/6800)                 11.80 Note : General, selling and administrative expenses are not part of production cost and it shall be ignored

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