Question

Vital Industries manufactured​ 2,400 units of its product Huge in the month of April. It incurred a total cost of​ $132,000 during the month. Out of this​ $132,000, $45,700 comprised of direct materials used in the product and the rest was incurred because of the conversion cost involved in the process. Vital had no opening or closing inventory. What will be the total cost per unit of the​ product, assuming conversion costs contained​ $10,000 of indirect​ labor?

Answer 1

$55 per unit

Step-by-step explanation:

The computation of the total cost per unit of the​ product is shown below:

= Total cost incurred ÷ number of units manufactured

= $132,000 ÷ 2,400 units

= $55 per unit

BY dividing the total cost incurred with the number of units manufactured we can get the total cost per unit

All other information i.e shown is not relevant. Hence, ignored it