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k_poss84 · Dec 7, 2006, 09:06 PM

If cost of goods manufactured was $202,500 & 45,000 were produced, what is the unit cost of production?

akshaysumaria · May 28, 2007, 12:58 PM

Originally Posted by k_poss84

If cost of goods manufactured was $202,500 & 45,000 were produced, what is the unit cost of production?

$202,500 divided by 45,000pcs = $4.5 = Unit cost of production

pree007 · May 29, 2007, 07:26 PM

akshaysumaria is fairly true

omsailogistic · May 31, 2007, 02:02 PM

I think both the answers are wrong
Cost of production is different than cost of manufacture
Cost of manufacture is deemed to cover all expenses which are incurred up to the stage of converstion materials into finished goods.. but this cann't be the cost of production
Since
Administration
Selling and distribution
And other overheads also form part of cost of production
These should also be included while arriving at the cost of production

But since the facts in your case are very limited... your cost of manufacture is 4.5 as given by "AKSHAY" and " PREE"