During its first year of operations Beta Company paid 55000

During its first year of operations, Beta Company paid $55,000 for direct materials and $20,000 in wages for production workers. Lease payments and utilities on the production facilities amounted to $9,000. General, selling, and administrative expenses were $10,000. The company produced 7,000 units and sold 6,000 units for $17.00 a unit. The average cost to produce one unit is which of the following amounts? (Round your final answer to 2 decimal places.)

$12.00

$13.43

$14.00

$10.67

Solution

Note: Selling and administrative expenses is not directly attributable to Production so excluded from calculation.