The value of the ending inventory is calculated by multiplying the number of units in ending inventory by the ________.

1 answer:

7 0

The value of the ending inventory is calculated by multiplying the number of units in ending inventory by the unit production cost.

Using the following formula, calculating the unit cost of production is as easy as adding and dividing. Cost per Unit is calculated as (Fixed Costs – Variable Costs) / Units.

Add up all the expenses, then divide the total by the quantity of products you sell:

The fixed costs for a certain time period should be added up.

The same-period variable expenses should be added up.

To determine the overall manufacturing cost, combine fixed and variable costs.

Subtract the number of units you produced during that time period from the overall production cost.

To learn more about Unit Cost of Production here

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