PFA Corporation uses a throughput costing system and reported the following information for its first month of operations: Units produced 140
Units sold 120
Material cost per unit produced $3.50
Conversion cost per unit produced $6.50
Fixed period costs per unit produced $6.00
Variable period costs per unit produced $4.00
Selling price per unit $25.00
PFA's total throughput product cost incurred was:
A)$490
B)$1,400
C)$420
D)$1,200

Question

Quizplus · Accepted Answer

Throughput product cost = (Units produced x Material cost per unit produced) + (Units produced x Conversion cost per unit produced)= (140 x $3.50) + (140 x $6.50)= $490 + $910= $1,400

PFA Corporation Uses a Throughput Costing System and Reported the Following