Chapter 5, Problem 9E

AAA Appliances Inc. has two production departments. The nature of the process is such that no units remain in process in Finishing at the end of the period. At the beginning of the period, 10,000 units with a cost of $30,000 were transferred from Assembly to Finishing. Finishing incurred costs of $8,800 for materials, $7,200 for labor, and $8,800 for factory overhead, and finished 10,000 units during the month.

1. a. Determine the unit cost for the month in Finishing.
2. b. Determine the unit cost of the products transferred to finished goods.