Question

The following information is from Morris company: Direct materials : $30,000 Wages for production workers: $50,000 Lease, utility costs and depreciation for factory workers: $15,000 General Selling and administrative Expenses: $20,000 The average cost to produce one unit: $2,50 Based on this information can you find the NUMBER OF UNITS produced during the period

Answer 1

Answer:

Number of units produced during the period: 38,000 units

Explanation:

Cost to produce the product exclude General Selling and administrative Expenses - selling and management expense.

Total Cost to produce the product = Direct materials + Wages for production workers + Lease, utility costs and depreciation for factory workers = $30,000 + $50,000 + $15,000 = $95,000

The average cost to produce one unit: $2,50. Number of units produced during the period = $95,000/$2,50 = 38,000 units