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24 December, 09:14

Serile Pharma places 860 units in production during the month of January. All 860 units are completed during the month. It had no opening inventory. Direct material costs added during January was $ 112 comma 000 and conversion costs added during January was $ 12 comma 700. What is the total cost per unit of the product produced during January? A. $ 145 B. $ 130 C. $ 10 D. $ 80

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  1. 24 December, 12:07
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    A. $ 145

    Explanation:

    We will add up the cost incurred during the period and then divide among the complete units of the period to determinate the unit cost for the month.

    direct materials 112,000

    conversion cost 12,700

    total cost: 124,700

    units completed during the period: 860

    unit cost: $ 124,700 / 860 units = $145
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