Asked Dec 3, 2019

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?


Expert Answer

Step 1

Direct Materials: At the time of manufacturing, material which is directly related to the finished goods is known as direct material.

Direct Labor Cost: Direct labor cost is the cost of the labor paid to the employees who are directly involved in the conversion of the raw materials to the finished products. For example: Wages paid to the mechanic.


Step 2

Calculate the total cost per unit ...


Image Transcriptionclose

Direct material costs+Conversion cost Total cost per unit Number of units prođuced during the month of January $74,000+ $8, 400 800 units -$103


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