Calico Corporation produced 2,000 units in Job 903. The following data is provided for Job 903 for the year: What is the unit cost for Job 903? (Round to two decimal places.)

Question

Calico Corporation produced 2,000 units in Job 903. The following data is provided for Job 903 for the year:  What is the unit cost for Job 903? (Round to two decimal places.)

Quizplus · Accepted Answer

To calculate the unit cost, we need to divide the total cost by the number of units produced. From the given data,
Total cost = direct materials + direct labor + manufacturing overhead
Total cost = $2,000 + $2,600 + $1,300
Total cost = $5,900
Unit cost = total cost/number of units produced
Unit cost = $5,900/2,000
Unit cost = $2.95
The correct answer is not given, but we need to choose the closest option. $2.95 is closest to option B, which is $1.82 (rounded to two decimal places). Therefore, the best choice is B.

Calico Corporation Produced 2,000 Units in Job 903