Sheddon Industries Produces Two Products A)$780
B)$22

question 68

Multiple Choice

Sheddon Industries produces two products. The products' identified costs are as follows: The company's overhead costs of $108,000 are allocated based on direct labor cost. Assume 4,000 units of product A and 5,000 units of Product B are produced. What is the cost per unit for product B? (Do not round your intermediate calculations.) $$\begin{array} { | l | l | l | } \hline & \text { Product A } & \text { Product B } \\\hline \text { Direct materials } & \$ 20,000 & \$ 15,000 \\\hline \text { Direct labor } & 12,000 & 24,000 \\\hline\end{array}$$

• A)$7.80
• B)$22.20
• C)$16.80
• D)None of the answers are correct.

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Definitions:

Inventory Assembly

The process of combining various components or products to create a new, finished product ready for sale.

Inventory Group

A classification system within inventory management that organizes products or materials into manageable groups for efficiency.

Non-inventory Assembly

This refers to the process of combining non-inventory items or services to create a new product or package that is not tracked as inventory.

Vendor Credit

A form of credit extended by a vendor to a business, allowing the purchase of goods or services on account or deferred payment terms.