Question & Answer: Assume that a value stream in Atlas Company has two products with material costs of $35,000 and $75,000 for a given we…..

Assume that a value stream in Atlas Company has two products with material costs of $35,000 and $75,000 for a given week. The conversion costs for the week amounted to $300,000. The units produced for the first product are 15,000 with 14,000 shipped to customers. For the second product, 30,000 units were produced and shipped. Calculate the cost per unit for the first product. (Note: Round answer to two decimal places.)

a.$9.32 per unit

b.$3.25 per unit

c.$6.50 per unit

d.$8.68 per unit

Expert Answer

 

Material costs 35000
Conversion costs 95455
Total 130455
Units 14000
Cost per unit 9.32
Option A is correct
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