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# During its first year of operations- Beta Company paid \$26-310 for dir.docx

8 de Feb de 2023
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Acct505 final exm 2015
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### During its first year of operations- Beta Company paid \$26-310 for dir.docx

1. During its first year of operations, Beta Company paid \$26,310 for direct materials and \$18,100 in wages for production workers. Lease payments and utilities on the production facilities amounted to \$7,100. General, selling, and administrative expenses were \$8,100. The company produced 5,100 units and sold 4,100 units for \$15.10 a unit. The average cost to produce one unit is which of the following amounts? (Round your final answer to 2 decimal places.) \$11.69 \$10.10 \$8.15 \$12.56 Solution The Average Cost of Production per unit is as follows :- Therefore, the average cost of production per unit is \$ 10.10. Note : General, selling, and administrative expenses are not included in Cost of Production. Particulars Total Amount (\$) No of Units Per unit Direct Material 26310 5100 5.16 Wages 18100 5100 3.55 Lease Payments 7100 5100 1.39 Total Cost of Production 51510 10.10
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