Question

Information from the records of the Conundrum Company for September 2018 was as follows:

Sales $307,500
Selling and administrative expenses 52,500
Direct materials used 66,000
Direct labor 75,000
Variable factory overhead 50,000
Factory overhead 51,250
Inventories
Sept. 1, 2018 Sept 30, 2018
Direct materials $ 8,000 $10,500
Work in process 18,750 21,000
Finished goods 17,250 14,250

Conundrum Corporation produced 20,000 units.

The prime costs per unit for September were

a.$7.05

b.$8.8125

c.$20.00

d.$14.7375

Answer 1

The prime costs per unit for September were a. $7.05

Step-by-step explanation:

The prime costs per unit for September were (consider the following calculation).

step 1. = ($66,000 + $75,000) / 20,000 units

step 2. = $141,000 / 20,000 units

step 3. = $7.05 per unit