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Dmitry_Shevchenko [17]
3 years ago
5

During its first year of operations, Forrest Company paid $44,760 for direct materials and $50,600 in wages for production worke

rs. Lease payments, utility costs, and depreciation on factory equipment totaled $14,400. General, selling, and administrative expenses were $20,600. The average cost to produce one unit was $5.60. How many units were produced during the period
Business
1 answer:
lilavasa [31]3 years ago
6 0

Answer:

19,600 units

Explanation:

The computation of the number of units produced is shown below:

But before that we need to do the following calculations

The total cost of production is

= Direct materials + Wages  + Depreciation

= $44,760 + $50,600 + $14,00

= $107,960

And, the average cost to generate one unit is $5.60

So, the number of units produced is

= Total cost ÷ average cost per unit

= $107,960 ÷ $5.60

= 19,600 units

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