Question

There are 2615 pounds of material that have a cost of $1.32 per

pound.
The final production was 42120 units, and the final balance of
material was 650 pounds.
Determine the unit cost for this material

Answer 1

To determine the unit cost of the material, multiply the weight of the material by the cost per pound, then divide the total cost by the total number of units produced.

Step-by-step explanation:

To determine the unit cost of the material, we need to calculate the total cost of the material and then divide it by the total number of units produced. The total cost of the material is calculated by multiplying the weight of the material by the cost per pound. In this case, the weight of the material is 2615 pounds and the cost per pound is $1.32. Therefore, the total cost of the material is 2615 pounds x $1.32/pound = $3451.80.

Next, we divide the total cost of the material by the number of units produced. In this case, the number of units produced is 42120. Therefore, the unit cost for this material is $3451.80 / 42120 units = $0.08 per unit.