Use the information below to answer the following question(s).
Consider the following data of the Vancouver Company for the year 20X4:

-What is the unit cost for the direct materials for 20X4 assuming direct materials costs are for the production of 1,014,000 units?
A) $0.80
B) $0.95
C) $1.00
D) $1.08
E) $1.11

Question

Use the information below to answer the following question(s).
Consider the following data of the Vancouver Company for the year 20X4:
 
-What is the unit cost for the direct materials for 20X4 assuming direct materials costs are for the production of 1,014,000 units?
A) $0.80 
B) $0.95 
C) $1.00 
D) $1.08 
E) $1.11

Quizplus · Accepted Answer

To calculate the unit cost for direct materials, we need the total direct materials cost and the total units produced.
Direct materials cost for 20X4 = $984,000
Total units produced = 1,014,000
Unit cost for direct materials = Direct materials cost / Total units produced
Unit cost for direct materials = $984,000 / 1,014,000 units
Unit cost for direct materials = $0.9709
Rounding up to nearest cent, we get $0.97, which is closest to choice C, $1.00.

Use the Information Below to Answer the Following Question(s)