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?
a. $3.18
b. $3.20
c. $3.22
d. $3.26