Alex Enterprises manufactures baseball equipment. During the last quarter of 2020, the company produced 50,000 baseball bats. The company's accounting records reveal the following information about the last quarter's production:
In the given scenario, how much per unit cost company has incurred in producing the baseball bat?

Question

Alex Enterprises manufactures baseball equipment. During the last quarter of 2020, the company produced 50,000 baseball bats. The company's accounting records reveal the following information about the last quarter's production:
 In the given scenario, how much per unit cost company has incurred in producing the baseball bat?

Quizplus · Accepted Answer

First, determine the Cost of Goods Manufactured using the following formula: Beginning WIP Inventory + DM + DL + MOH - Ending WIP Inventory = Cost of Goods Manufactured, $104,000 + $227,000 + $109,000 + $162,000 - $86,000 = $516,000. Now, calculate the cost per unit by dividing the Cost of Goods Manufactured by the number of units produced as, $516,000/50,000 = $10.32 per bat.

Alex Enterprises Manufactures Baseball Equipment