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Nike, Inc. manufactures athletic shoes using batch costing. In February 2034, the company produces 4 batches of sneakers with the following costs: Batch 1: Direct

Nike, Inc. manufactures athletic shoes using batch costing. In February 2034, the company produces 4 batches of sneakers with the following costs:

  • Batch 1: Direct materials $800,000, Direct labor $400,000, Factory overhead $300,000
  • Batch 2: Direct materials $850,000, Direct labor $425,000, Factory overhead $325,000
  • Batch 3: Direct materials $820,000, Direct labor $410,000, Factory overhead $310,000
  • Batch 4: Direct materials $900,000, Direct labor $450,000, Factory overhead $340,000

Required:

  • Calculate the total manufacturing costs for each batch.
  • Determine the cost per unit for each batch produced.
  • Analyze the profitability of each batch based on batch costing.

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