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Zesty Corp

Question 115

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Zesty Corp. produces bottles of ranch dressing in their regional factory. Jonah, the head cost accountant, would like to gather some data for the most recent year to calculate their unit costs. Jonah compiled the following cost information: Dressing Materials (DM), $34,500; Plastic Bottles and Labels, $18,428; Assembly Line Wages, $56,708; Packaging Wages, $33,303; and Manufacturing Overhead (MOH), $76,402. Their Beginning Work-in-Progress (WIP) Inventory was $6,500, and their Ending WIP Inventory was $9,803. During the year, Zesty Corp. produced 127,990 bottles of ranch dressing. What is the unit cost for the bottles of ranch based on the information Jonah has gathered?

Correct Answer:

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Unit Costs = $1.69
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