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Blaster, Inc., a manufacturer of portable radios, purchases the components from subcontractors to use to assemble into a complete radio.

Blaster, Inc., a manufacturer of portable radios, purchases the components from subcontractors to use to assemble into a complete radio. Each radio requires three units each of Part XBEZ52, which has a standard cost of $1.45 per unit. During May, Blaster experienced the following with respect to Part XBEZ52:  

Units

Purchases ($18,000)

12,000

Consumed in manufacturing

10,000

Radios manufactured

3,000

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