Santana Company Has No Beginning and Ending Inventories,and Reports the Following

Santana Company has no beginning and ending inventories,and reports the following information for its only product:
$$\begin{array} { l l } \text { Direct materials used } & \$ 250,000 \\\text { Direct labor } & \$ 120,000 \\\text { Fixed indirect manufacturing } & \$ 60,000 \\\text { Variable indirect manufacturing } & \$ 20,000 \\\text { Variable selling and administrative } & \$ 50,000 \\\text { Fixed selling and administrative } & \$ 10,000\end{array}$$
$\begin{array} { l } \text {Units produced and sold }&40,000 \\\end{array}$

Santana Company uses the absorption approach to prepare the income statement.What is the product cost per unit?

A) $11.00
B) $11.25
C) $12.00
D) $12.75

Correct Answer:

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