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    Production and average cost

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    (Please see the attached file for the complete problem description).
    Please assist with this project on Production Cost and explain your answer.

    The following informtion provides the amount of cost incurred in August for the cost items indicated. During August, 7,700 units of the firm's single product were manufactured.
    Raw materials $41,500
    Factory depreciation expense 40,600
    Direct labor 99,800
    Production supervisor's salary 6,100
    Computer rental expense 4,000
    Maintenance supplies used 600
    a. How much cost would you expect to be incurred for each of these items during September when 9,300 units of the product are planned for production? (Do not round intermediate calculations and round your final answer to nearest whole dollar.)

    Raw materials
    Factory depreciation expense

    Direct labor
    Production supervisor's salary
    Computer rental expense
    Maintenance supplies used
    Total cost

    b1. Calculate the average total cost per unit for the 7,700 units manufactured in August. (Round your answer to 2 decimal places.)

    Average total cost per unit =

    b2. It is meaningful to use the average total cost figure in part b1 to predict the cost in subsequent months? (True or False).

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    Solution Summary

    This solution helps to estimate the production and average cost in Excel.