Overland, Inc. company's work in process inventory on April 30 consists of 25,000 units.

Question

Quizplus · Accepted Answer

To determine the value of the work in process inventory, the company needs to multiply the number of units by the cost per unit. The cost per unit is calculated by adding together all the costs incurred to produce the units and dividing by the number of units.

Without information on the costs incurred, it is impossible to determine the exact cost per unit. However, we can use the given answer choices to make an educated guess.

Option A and B are significantly lower than option C and D, which would imply a cost per unit of less than $6.375.

Option D is significantly higher than option C, which would imply a cost per unit of more than $8.5.

Based on this analysis, option C of $178,125 seems like the best choice.