Determining inventoriable cost per unit

Reference no: EM13144708

St. Claire Manufacturing expects to produce and sell 6,000 units of Big, its only product, for $20 each. Direct material cost is $2 per unit, direct labor cost is $8 per unit, and variable manufacturing overhead is $3 per unit. Fixed manufacturing overhead is $24,000 in total. Variable selling and administrative expenses are $1 per unit, and fixed selling and administrative costs are $3,000 in total. According to generally accepted accounting principles, inventoriable cost per unit of Big would be:

A) $13.00 per unit
B) $14.00 per unit
C) $17.00 per unit
D) $18.50 per unit

Reference no: EM13144708

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