Chapter 1, Problem 4BD

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General Accounting

I am looking for the correct answer to this general accounting question with appropriate explanations.

In 2022, Rolling Mills, a producer of organic oat flour, had the capacity to produce 12,000,000 pounds of product at a conversion cost per pound of $0.18. The conversion cost per pound was $0.14 in 2021 (the previous year). The direct material cost per pound for both years was $0.09 per pound. In 2022, Rolling Mills produced 10,500,000 pounds, while actual production for the previous year was 9,200,000 pounds. What was the cost of unused capacity in 2022?

Compute the total manufacturing costs

Please provide correct answer general accounting question

Please provide the correct answer to this general accounting problem using accurate calculations.

Can you explain this general accounting question using accurate calculation methods?

How many units would need to be sold?