The correct answer is: D. Total cost, number of units produced.
Average unit cost is calculated by dividing the total cost of a product by the number of units produced. This gives you the average amount of money it costs to produce one unit of the product.
The other options are incorrect because they do not divide the total cost by the number of units produced. Option A divides the total cost by the number of units, which would give you the average cost per unit. Option B divides the total process cost by the number of units in process, which would give you the average cost per unit in process. Option C divides the total process cost by the number of finished goods, which would give you the average cost per finished good.
Here is an example to illustrate how to calculate average unit cost. Let’s say you produce 100 units of a product and it costs you $1000 to produce them. The average unit cost would be $10.
Average unit cost = Total cost / Number of units produced
Average unit cost = $1000 / 100 units
Average unit cost = $10