Question

serile pharma places 800 units in production during the month of january. all 800 units are completed during the month. it had no opening inventory. direct material costs added during january was $74,000 and conversion costs added during january was $8400. what is the total cost per unit of the product produced during january? group of answer choices $10 $80 $103 $93

Answer 1

By adding direct material costs ($74,000) and conversion costs ($8,400), the total costs amount to $82,400. Dividing this by the 800 units produced in January, the total cost per unit is calculated to be $103.

Step-by-step explanation:

The total cost per unit of the product produced by Serile Pharma during January can be calculated by adding the direct material costs to the conversion costs and then dividing by the total number of units produced. In this case, the direct material costs were $74,000 and the conversion costs were $8,400. Since all 800 units were completed in January with no opening inventory, we divide the total costs by the number of units to find the cost per unit.

Total Costs = Direct Material Costs + Conversion Costs = $74,000 + $8,400 = $82,400

Cost Per Unit = Total Costs / Number of Units = $82,400 / 800 = $103 per unit

Therefore, the total cost per unit of the product produced during January is $103.