Question: Johnson Controls manufactures HVAC systems using batch costing. In May 2035, the company produces 5 batches costing $2,000,000 in total. Batch sizes vary from 1,000

Johnson Controls manufactures HVAC systems using batch costing. In May 2035, the company produces 5 batches costing $2,000,000 in total. Batch sizes vary from 1,000 to 2,000 units per batch.

Required:

  • Allocate costs to each batch based on batch size.
  • Calculate the cost per unit for each batch.

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