Wolverine Company Manufactures Tape Dispensers $\begin{array}{ll}\text { Units started and completed } & 70,000 \\\text { Started and in process } & 10,000\end{array}$

Wolverine Company manufactures tape dispensers. Its Assembly department had the following output and costs: $\begin{array}{ll}\text { Units started and completed } & 70,000 \\\text { Started and in process } & 10,000\end{array}$ These units had all materials added but were only 60% complete as far as conversion costs. Direct materials costs were $480,000; conversion costs were $240,000. The unit cost of direct materials is:

A) $6.00
B) $1.67
C) $6.86
D) $3.32

Correct Answer:

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