The following are costs for a selected period: direct materials used in production,$75,000;direct labor cost of converting materials into product,$150,000;total indirect costs of manufacturing,$45,000.What is the unit cost of manufacturing 30,000 units in this period?
A)$7.50
B)$9.00
C)$6.00
D)$4.00

Question

Quizplus · Accepted Answer

The total manufacturing cost can be calculated by adding the direct materials, direct labor, and total indirect costs: 
$75,000 + $150,000 + $45,000 = $270,000 
Dividing the total manufacturing cost by the number of units produced gives the unit cost: 
$270,000 / 30,000 units = $9.00 per unit. Therefore the answer is B (9.00)

The Following Are Costs for a Selected Period: Direct Materials