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QUESTION 19 During its first year of operations, Buzz Lightyear Company paid $35,000 for direct materials and $70,000 in wage

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Answer #1

Direct materials = $35,000

Wages for production workers = $70,000

Lease payments, utility costs, and depreciation on factory equipment = $25,000

Total production cost = Direct materials + Wages for production workers + Lease payments, utility costs, and depreciation on factory equipment

= 35,000+70,000+25,000

= $130,000

Average production cost per unit = $3

Number of units produced x 3 = Total production cost

Number of units produced x 3 = 130,000

Number of units produced = 43,333 units

Correct option is A.

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