Jabari Manufacturing a widgets manufacturing company divides

Jabari Manufacturing, a widgets manufacturing company, divides its production operations into three processes Department 1, Department 2, and Department 3. The company uses a process costing system. Jabari incurred the following costs during the year to produce 4,700 units: Department 1 Department 2 Department 3 $17,500 $8,000 $6,000 If Jabari could sell only 3,400 units during the year, what will be the cost per unit of widget produced? (Round your answer to the nearest cent.) O A. $9.26 B. $5.43 O C. $6.70 O D. $3.72

Solution

C.$6.70.

cost per unit of widget produced = total cost /number of units produced

=> (17,500 + 8000+6000) / 4700 units

=>31,500 / 4700 units

=>$6.70 per unit.