Evanston Manufacturing Company reported the following information for the year 2017:
$$\begin{array} { | l | l | }
\hline \text { Number of units produced } & 6000 \
\hline \text { Number of units sold } & 6200 \
\hline \text { Cost of goods manufactured } & \$ 402,000 \
\hline \text { Cost of sales } & \$ 525,500 \
\hline \text { Sales revenue } & \$ 1,360,000 \
\hline \text { Gross profit } & \$ 742,000 \
\hline \text { Operating expense } & \$ 728,000 \
\hline
\end{array}$$
What was the unit product cost?

Question

Evanston Manufacturing Company reported the following information for the year 2017:
$$\begin{array} { | l | l | } 
\hline \text { Number of units produced } & 6000 \
\hline \text { Number of units sold } & 6200 \
\hline \text { Cost of goods manufactured } & \$ 402,000 \
\hline \text { Cost of sales } & \$ 525,500 \
\hline \text { Sales revenue } & \$ 1,360,000 \
\hline \text { Gross profit } & \$ 742,000 \
\hline \text { Operating expense } & \$ 728,000 \
\hline
\end{array}$$
What was the unit product cost?

Quizplus · Accepted Answer

Unit product cost = (Beginning inventory + Purchases - Ending inventory) / Number of units produced
= (12,000 + 127,000 - 10,000) / 2,000
= $67.00

Evanston Manufacturing Company Reported the Following Information for the Year