If the cost per unit is $70 and the total number of units manufactured in company are 6000, then the total manufacturing cost would be _____________?
Correct answer: D. $420,000
- A. $240,000.00
- B. $320,000
- C. $210,000
- D. $420,000
Explanation
Total manufacturing cost equals unit cost multiplied by units manufactured: $70 × 6,000 = $420,000. This is a total-cost calculation, not a per-unit calculation.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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