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Homework answers / question archive / During its first year of operations, Forrest Company paid $22,360 for direct materials and $49,600 in wages for production workers
During its first year of operations, Forrest Company paid $22,360 for direct materials and $49,600 in wages for production workers. Lease payments, utility costs, and depreciation on factory equipment totaled $13,600. General, selling, and administrative expenses were $19,600. The average product cost to produce one unit was $4.60. How many units were produced during the period?
Total cost of production=Direct materials + Wages +Depreciation
=$22,360+$49,600+$13,600
=$85,560
Average cost=Total cost/Total units
Total units=85,560/4.60
Total units=18,600
