Roy Corporation produces a single product. During July, Roy produced 10,000 unit
ID: 2352648 • Letter: R
Question
Roy Corporation produces a single product. During July, Roy produced 10,000 units. Costs incurred during the month were as follows:Direct materials............................................................................10,000
Direct labor..................................................................................20,000
Variable manufacturing overhead.................................................5,000
Variable selling and administrative..............................................3,000
fixed manufacturing overhead......................................................9,000
fixed selling and administrative....................................................4,000
total cost...................................................................................51,000
Under absorption costing, any unsold units would be carried in the inventory account at a unit product cost of
Explanation / Answer
unit product cost: 10,000 direct material +20,000 direct labor +5,000 variable manufacturig overhead +9,000 fied manufacturing overhead =44,000 total cost 44,000/10,000 units = $4.40 per unit answer: $4.40 per unit
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