Happy Company manufactures tape dispensers. The Assembly Department reported the follow data for the past month:
Units started and completed: 70,000
Units started and not complete : 10,000
Units in beginning inventory: 0
Direct materials costs: $560,000
Conversion costs: $240,000
The partially complete units at the end of the month were 100 percent complete with respect to materials and 60 percent complete with respect to conversion costs. The unit cost of direct materials is ________.
A. $6.86
B. $3.32
C. $1.67
D. $7.00