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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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TomShelby

Answer:

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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