A manufacturing company produces two products, Product A and Product B, using the same production facilities and raw materials. The company incurred a total manufacturing cost of $60,000 to produce 1,000 units of Product A and 2,000 units of Product B during the period. To calculate the unit cost for each product, the total manufacturing cost is allocated to each product based on their relative usage of the facilities and materials.
Original Description:
This is a formal presentation on process costing, example 2.
A manufacturing company produces two products, Product A and Product B, using the same production facilities and raw materials. The company incurred a total manufacturing cost of $60,000 to produce 1,000 units of Product A and 2,000 units of Product B during the period. To calculate the unit cost for each product, the total manufacturing cost is allocated to each product based on their relative usage of the facilities and materials.
A manufacturing company produces two products, Product A and Product B, using the same production facilities and raw materials. The company incurred a total manufacturing cost of $60,000 to produce 1,000 units of Product A and 2,000 units of Product B during the period. To calculate the unit cost for each product, the total manufacturing cost is allocated to each product based on their relative usage of the facilities and materials.