Jabari Manufacturing, a Widgets Manufacturing Company, Divides Its Production Operations

question 123

Multiple Choice

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 4600 units: $$\begin{array} { | l | r | } \hline \text { Department 1 } & \$ 18,000 \\\hline \text { Department 2 } & \$ 8000 \\\hline \text { Department 3 } & \$ 4000 \\\hline\end{array}$$ If Jabari could sell only 3400 units during the year, what will be the cost per unit of widget produced? (Round your answer to the nearest cent.)

• A) $5.65
• B) $3.91
• C) $8.82
• D) $6.52

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Definitions:

Petty Cash Fund

A small amount of cash kept on hand for minor or incidental expenses within a business.

Journal Entry

A record in accounting that represents a transaction and its effects on various accounts, typically involving at least one debit and one credit.

Cash Short and Over

An account that tracks discrepancies between the expected cash amounts and the actual cash counted, indicating shortages or overages.

Bank Account Reconciling

The process of comparing and matching figures from the accounting records against those presented on a bank statement to ensure they are in agreement and accurate.