Yum Yum Cookies bakes, packages, and distributes a variety of delicious cookies, including their best-selling chocolate chip and oatmeal raisin cookies. John, the head accountant, is finishing his accounting recap for the year and has gathered some data about each of these treats.
Chocolate Chip:
Beginning WIP Inventory: $12,347
Ending WIP Inventory: $9,877
Oatmeal Raisin:
Beginning WIP Inventory: $8,442
Ending WIP Inventory: $3,200
John would like to take a closer look at the unit cost for each cookie to assist management in making better decisions for the upcoming year. John has compiled the following costing information:
Yum Yum has determined the unit cost of Chocolate Chip to be $2.56 and the unit cost of Oatmeal Raisin to be $2.54. How many Chocolate Chip cookies did they manufacture during the year? (Round units to whole number.)

Question

Yum Yum Cookies bakes, packages, and distributes a variety of delicious cookies, including their best-selling chocolate chip and oatmeal raisin cookies. John, the head accountant, is finishing his accounting recap for the year and has gathered some data about each of these treats.
Chocolate Chip:
Beginning WIP Inventory: $12,347
Ending WIP Inventory: $9,877
Oatmeal Raisin:
Beginning WIP Inventory: $8,442
Ending WIP Inventory: $3,200
John would like to take a closer look at the unit cost for each cookie to assist management in making better decisions for the upcoming year. John has compiled the following costing information:
 Yum Yum has determined the unit cost of Chocolate Chip to be $2.56 and the unit cost of Oatmeal Raisin to be $2.54. How many Chocolate Chip cookies did they manufacture during the year? (Round units to whole number.)

Quizplus · Accepted Answer

This question requires familiarity with the calculation for the Cost of Goods Manufactured (COGM). Normally, the next step would be to divide that total by the number of units produced. In this question, the unit cost is given, so the process needs to be worked backwards to solve for the units produced. To calculate the Direct Labor (DL), add the Stirring, Baking, and Packaging Wages: $26,744 + $17,880 + $10,876 = $55,500. Direct Materials (DM) costs are equal to the cost of the cookie materials: $18,290.
 11ee941a_b6e4_c346_bdb6_4b54cc297cdd_TBW1041_00 Now, use the COGM calculated to arrive at the number of cookies produced:
Unit Costs = COGM/Number of Units Manufactured
$2.56 = $109,661/Number of Units Manufactured
Number of Units Manufactured = $109,661/$2.56
Number of Units Manufactured = 42,836 units

Yum Yum Cookies Bakes, Packages, and Distributes a Variety of Delicious