production in units: 3,000\ndirect materials cost: $10,000\ndirect labor cost: $9,600\noverhead cost…

production in units: 3,000\ndirect materials cost: $10,000\ndirect labor cost: $9,600\noverhead cost: $7,000\nsales commission per unit sold: $4\nprice per unit sold: $29\nfixed selling and administrative expense: $7,000\nthere were no beginning and ending inventories. what is sullys cost of goods sold per unit? (round answer to two decimal places.)\na $12.50\nb $10.00\nc $8.87\nd $12.60

production in units: 3,000\ndirect materials cost: $10,000\ndirect labor cost: $9,600\noverhead cost: $7,000\nsales commission per unit sold: $4\nprice per unit sold: $29\nfixed selling and administrative expense: $7,000\nthere were no beginning and ending inventories. what is sullys cost of goods sold per unit? (round answer to two decimal places.)\na $12.50\nb $10.00\nc $8.87\nd $12.60

Answer

Explanation:

Step1: Calculate total manufacturing cost

Total manufacturing cost = Direct materials cost+Direct labor cost + Overhead cost Total manufacturing cost = $10000 + 9600+7000=$26600$

Step2: Calculate cost of goods sold per unit

Since there are no beginning and ending inventories, cost of goods sold = total manufacturing cost. Production in units = 3000 Cost of goods sold per unit=$\frac{26600}{3000}\approx$8.87$

Answer:

C. $8.87