Question
Adom Incorporation produces surgical equipment for several hospitals with the order code 911. During April 2020, the company produced 100 units with a production cost
Adom Incorporation produces surgical equipment for several hospitals with the order code 911. During April 2020, the company produced 100 units with a production cost per unit of $160,000. In the final inspection process, 10 defective products were found that required a rework fee of $12,000,000 and 50 units of damaged products which could be sold to the customer for $3,000,000. Rework of defective products and loss of damaged products occurs due to normal processes within the company, then the cost per unit of 911 orders is.
a. $164,000
b. $160,000
c. $162,000
d. $165,000
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