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Vital Industries manufactured 2,500 units of its product Huge in the month of April. It incurred...

Vital Industries manufactured 2,500 units of its product Huge in the month of April. It incurred a total cost of $125,000 during the month. Out of this $125,000​ $45,700 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?

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Answer #1

Total cost per unit = Total cost / Units manufactured

= $125,000 / 2,500 units

= $ 50

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