If ABC Company determines its cost per unit for July's production is $28.75 and it produced 12,600 units, ABC's total manufacturing costs (direct materials, direct labor, and manufacturing overhead) incurred in July is $.
Question
If ABC Company determines its cost per unit for July's production is .
Solution
To calculate the total manufacturing costs for ABC Company in July, you need to multiply the cost per unit by the number of units produced.
Here are the steps:
- Identify the cost per unit, which is $28.75.
- Identify the number of units produced, which is 12,600.
- Multiply the cost per unit by the number of units produced.
So, 361,500.
Therefore, ABC's total manufacturing costs incurred in July is $361,500.
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