Final answer:
The difference in Price-per-Unit for two similar jobs in the work in process inventory could be due to changes in cost inputs like raw materials, labor, or overheads, or due to differences in production scale affecting economies of scale.
Step-by-step explanation:
The main subject of this question revolves around understanding why two similar products (bird houses) from the same work in process inventory have different Price-per-Unit values. A plausible explanation could be variations in cost inputs, which might affect the final pricing of the products. These inputs can include changes in raw materials costs (such as wood), labor costs, or overhead expenses (like rent or electricity).
Considering the provided information, if we assume the cost of labor or capital has increased - for instance, if labor was previously costing $100 per unit and now costs $200 per unit - it would result in an increase in production costs. This could be the case with Job #3B, as the cost for producing each bird house in this job batch might have increased, causing the Price-per-Unit to rise from $5.67 to $6.82.
Another aspect to consider is economies of scale, which suggests that a company can produce goods at a lower average cost when production is done on a larger scale. If Job #3A was produced when the company was enjoying economies of scale, and Job #3B was not, this could also explain the difference in unit prices.