Figure 2-12
Information from the records of the Conundrum Company for September 2016 was as follows:
Inventories
Conundrum Corporation produced 20,000 units.
-Refer to Figure 2-12. The prime costs per unit for September were
A) $7.05
B) $8.8125
C) $14.7375
D) $20.00

Question

Figure 2-12
Information from the records of the Conundrum Company for September 2016 was as follows:
  Inventories
  Conundrum Corporation produced 20,000 units.
-Refer to Figure 2-12. The prime costs per unit for September were
A) $7.05 
B) $8.8125 
C) $14.7375 
D) $20.00

Quizplus · Accepted Answer

Prime costs include direct materials and direct labor. Direct materials cost per unit is $5.00 and direct labor cost per unit is $2.05. Therefore, prime costs per unit = $5.00 + $2.05 = $7.05.

Figure 2-12 Information from the Records of the Conundrum Company for September