Jabari Manufacturing, a widgets manufacturing company, divides its production operations into three processes—Department 1, Department 2, and Department 3. The company uses a process costing system. Jabari incurred the following costs during the year to produce 4800 units:
If Jabari could sell only 3100 units during the year, what will be the cost per unit of widget produced? (Round your answer to the nearest cent.)
A) $5.00
B) $3.54
C) $10.97
D) $7.08
D) $7.08
Explanation: Total costs / number of units produced = cost per unit
$34,000 / 4800 = $7.08
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