Serile Pharma Places 900 Units in Production During the Month

question 19

Multiple Choice

Serile Pharma places 900 units in production during the month of January.All 900 units are completed during the month.It had no opening inventory.Direct material costs added during January was $81,000 and conversion costs added during January was $9,000.What is the total cost per unit of the product produced during January?

• A) $100
• B) $90
• C) $80
• D) $10

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Definitions:

Supplier Scoring

A method used to evaluate and rank suppliers based on various criteria such as delivery time, quality, cost, and reliability to improve purchasing decisions.

Procurement

The process of obtaining goods and services, including sourcing, negotiating, and strategic selection.

Buyback Contracts

Agreements where a seller commits to repurchase the product from the buyer at a specified price under certain conditions.

Variable Cost

A cost that changes in proportion to the level of output or activity in a business.