Gizmo Manufacturers, a widgets manufacturing company, divides its production operations into three processes-Department 1, Department 2, and Department 3. The company uses a process costing system. Gizmo incurred the following costs during the year 2014, to produce 5,000 units. $$\begin{array} { | l | r | }
\hline \text { Department 1 } & \$ 17,500 \
\hline \text { Department 2 } & 6,000 \
\hline \text { Department 3 } & 4,000 \
\hline
\end{array}$$ If Gizmo could sell only 3,500 units in 2014, what will be the cost per unit of widget produced?

Question

Gizmo Manufacturers, a widgets manufacturing company, divides its production operations into three processes-Department 1, Department 2, and Department 3. The company uses a process costing system. Gizmo incurred the following costs during the year 2014, to produce 5,000 units. $$\begin{array} { | l | r | } 
\hline \text { Department 1 } & \$ 17,500 \
\hline \text { Department 2 } & 6,000 \
\hline \text { Department 3 } & 4,000 \
\hline
\end{array}$$ If Gizmo could sell only 3,500 units in 2014, what will be the cost per unit of widget produced?

Quizplus · Accepted Answer

The Answer of Gizmo Manufacturers, a widgets manufacturing company, divides its production operations into three processes-Department 1, Department 2, and Department 3. The company uses a process costing system. Gizmo incurred the following costs during the year 2014, to produce 5,000 units. $$\begin{array} { | l | r | } 
\hline \text { Department 1 } & \$ 17,500 \
\hline \text { Department 2 } & 6,000 \
\hline \text { Department 3 } & 4,000 \
\hline
\end{array}$$ If Gizmo could sell only 3,500 units in 2014, what will be the cost per unit of widget produced?

Gizmo Manufacturers, a Widgets Manufacturing Company, Divides Its Production Operations