Answer:
Unit cost of an assembled radio = $215
Explanation:
Cost of direct material for the month = $800,000
Cost of conversion = $705,000
Total units produced = 7,000 units
Cost per unit of manufacturing will be total of both the costs divided by number of units produced.
Total costs = $800,000 + $705,000 = $1,505,000
Cost per unit = [tex]\frac{1,505,000}{7,000} = $215[/tex]
As there was no opening or closing WIP inventory all the costs incurred during the month will be considered.
Unit cost of an assembled radio = $215
