Vital Industries Manufactured 1,200 Units of Its Product Huge in the Month

question 128

Multiple Choice

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 comprised 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?

• A) $100
• B) $90
• C) $70
• D) $30

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