1. During its first year of operations, Beta Company paid $15,000 for direct material, $16,000 in wages for production workers, and $20,000 wages for administrative and sales personnel. Lease payments and utilities on the administrative building and production facilities amounted to $5,000 and $7,000, respectively. General, selling, and administrative expenses were $6,000. The company owns a delivery car and manufacturing equipment. The annual depreciation on the car is $ 1,000. The original cost of the equipment is $10,000 and has a salvage value of $2,000 after 4 years. The company produced 8,000 units and sold 6,000 units at a price of $15 a unit. The average cost to produce one unit is which of the following amounts? a. $5 b. $10 c. $9.20 d. $11.50

1. During its first year of operations, Beta Company paid $15,000 for direct material, $16,000 in wages for production workers, and $20,000 wages for administrative and sales personnel. Lease payments and utilities on the administrative building and production facilities amounted to $5,000 and $7,000, respectively. General, selling, and administrative expenses were $6,000. The company owns a delivery car and manufacturing equipment. The annual depreciation on the car is $ 1,000. The original cost of the equipment is $10,000 and has a salvage value of $2,000 after 4 years. The company produced 8,000 units and sold 6,000 units at a price of $15 a unit. The average cost to produce one unit is which of the following amounts? a. $5 b. $10 c. $9.20 d. $11.50

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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