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Sir if we are r making marginal costing account so how will we calculate our material cost per unit? Given that sales =15,000 units , production=10,000units and Material cost=£50,000.
Sir can u please explain the reason behind this? Because we calculate cost of sales but the way u have told it included cost of production and not some part sales.
But how else would you calculate it? 🙂
You have not said anything about inventories – obviously there must have been inventories at the start of the period, and the inventories will have fallen.
The cost per unit for this period is the cost for this period divided by the production for this period.
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