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26 October, 11:45

Information from the records of the Conundrum Company for September 2018 was as follows:

Sales $307,500

Selling and administrative expenses 52,500

Direct materials used 66,000

Direct labor 75,000

Variable factory overhead 50,000

Factory overhead 51,250

Inventories

Sept. 1, 2018 Sept 30, 2018

Direct materials $ 8,000 $10,500

Work in process 18,750 21,000

Finished goods 17,250 14,250

Conundrum Corporation produced 20,000 units.

The prime costs per unit for September were

a.$7.05

b.$8.8125

c.$20.00

d.$14.7375

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Answers (1)
  1. 26 October, 11:47
    0
    The prime costs per unit for September were a. $7.05

    Explanation:

    The prime costs per unit for September were (consider the following calculation).

    step 1. = ($66,000 + $75,000) / 20,000 units

    step 2. = $141,000 / 20,000 units

    step 3. = $7.05 per unit
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