Question

Vital Industries manufactured 1,200 units of its product Huge in the month of April. It incurred a total cost of $120,000 during the month. Out of this $120,000, $45,000 was the cost of direct materials used in the product and the rest was incurred because of the conversion cost involved in the process. Ryan 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

$100

Step-by-step explanation:

In the question, we are given the following:

Total cost = $120,000

Units produced = 1,200 units

Therefore, we have:

Total cost per unit = $120,000 / 1,200 = $100