Question
Claeson Cleaners uses one single process to produce their various cleaning products. In one month, Claeson Cleaners made 42 batches of toilet cleaner, 16 batches
Claeson Cleaners uses one single process to produce their various cleaning products. In one month, Claeson Cleaners made 42 batches of toilet cleaner, 16 batches of window cleaner, and 28 batches of floor cleaner. One batch of toilet cleaner has manufacturing costs of $4,280. One batch of window cleaner has manufacturing costs of $2,740, and one batch of floor cleaner has manufacturing costs of $3,490. Each batch makes 1,000 units. How would Claesons cost accounting differ if they used a process costing system rather than a job-order costing system?
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Toilet cleaners would have a cost of $2.92/unit, window cleaners would have a cost of $4.91/unit, and floor cleaners would have a cost of $2.81/unit, rather than each type of cleaner having the same unit cost.
Each unit of cleaner would have an average cost of $3.74 regardless of the type of cleaner, rather than each cleaner having a different average cost per unit.
Each unit of cleaner would have an average cost of $3.50 regardless of the type of cleaner, rather than each cleaner having a different average cost per unit.
Toilet cleaners would have a cost of $4.28/unit, window cleaners would have a cost of $2.74/unit, and floor cleaners would have a cost of $3.49/unit, rather than each type of cleaner having the same unit cost.
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