For financial reporting purposes, the total amount of product costs incurred to make 4,000 units is closest to:

A) $56,200
B) $45,800
C) $60,200
D) $10,400

Question

For financial reporting purposes, the total amount of product costs incurred to make 4,000 units is closest to:A) $56,200B) $45,800C) $60,200D) $10,400

Khadijat Channel · Accepted Answer

Final Answer : A, Explanation :  We need to calculate the total product costs incurred to make 4,000 units. Product costs include direct materials, direct labor, and manufacturing overhead. Since we are not given any specific information on the breakdown of these costs, we can assume an average cost per unit.Let's say that the total product costs incurred to make 4,000 units is x. Then, the product cost per unit is x/4,000.We do not have any information on selling and administrative costs, so we can assume all costs are product costs.Using the answer choices provided, we can eliminate D as it is too low. Between B, A, and C, the closest answer is A$56,200.Thus, the best choice is A.

For financial reporting purposes, the total amount of product costs incurred to make 4,000 units is closest to:

A) $56,200
B) $45,800
C) $60,200
D) $10,400

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