Chapter 18, Problem 18.19MCQ

Fresh Products, Inc. incurred the following costs during December related to the production of its 162,500 frozen ice cream cone specialty items:

Food product labor	$175,000
Ice cream cone ingredients	325,000
Sales and marketing costs	10,000
Factory overhead	16,000
Normal food spoilage	4,000
Abnormal spoilage	3,000

What is the per unit inventory cost allocated to the company’s frozen ice cream cone specialty items for December?

1. a. $3.18
2. b. $3.20
3. c. $3.22
4. d. $3.26