Velasco Productions has provided the following information for the year: $$\begin{array} { | l | r | }
\hline \text { Direct Labor } & \$ 150,000 \
\hline \text { Beginning Work-in-Process Inventory } & 63,000 \
\hline \text { Direct Materials Used } & 269,000 \
\hline \text { Ending Work-in-Process Inventory } & 52,900 \
\hline \text { Manufacturing Overhead } & 135,000 \
\hline
\end{array}$$ During the year, Velasco produced 71,220 units of product. Calculate the unit product cost. (Round your answer to the nearest cent.)
A) $7.92
B) $6.77
C) $7.78
D) $8.66

Question

Velasco Productions has provided the following information for the year: $$\begin{array} { | l | r | } 
\hline \text { Direct Labor } & \$ 150,000 \
\hline \text { Beginning Work-in-Process Inventory } & 63,000 \
\hline \text { Direct Materials Used } & 269,000 \
\hline \text { Ending Work-in-Process Inventory } & 52,900 \
\hline \text { Manufacturing Overhead } & 135,000 \
\hline
\end{array}$$ During the year, Velasco produced 71,220 units of product. Calculate the unit product cost. (Round your answer to the nearest cent.)
A) $7.92
B) $6.77
C) $7.78
D) $8.66

Quizplus · Accepted Answer

The correct answer is A.The unit product cost is calculated by dividing the total manufacturing costs by the number of units produced. In this case, the total manufacturing costs are $150,000 (direct labor) + $269,000 (direct materials used) + $135,000 (manufacturing overhead) = $554,000. The number of units produced is 71,220. Therefore, the unit product cost is $554,000 / 71,220 = $7.92 (rounded to the nearest cent).

Velasco Productions Has Provided the Following Information for the Year