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18RQ

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Horngren'S Financial And Managerial Accounting
Found in: Page 885

Short Answer

How does a manufacturing company calculate unit product cost?

The unit product cost is calculated using the formulae which is the cost of goods manufactured and divided by the total units produced

See the step by step solution

Step by Step Solution

Step 1: Definition of Manufacturing Company

A manufacturing company is defined as a company or business organization that converts raw materials into finished goods using labor and equipment.

Step 2: Calculation of unit product cost

The unit product cost is computed using the cost of goods manufactured. The formula to calculate the unit product cost is the cost of goods manufactured divided by the total units produced.

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