QUESTION 14 Swansea Finishing produces and sells a decorative pillow for $103.00

Question

QUESTION 14 Swansea Finishing produces and sells a decorative pillow for $103.00 per unit. In the first month of operation, 2,300 units were produced and 1,800 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for thee month includes Variable manufacturing costs $23.00 per unit Variable marketing costs $8.00 per unit Fixed manufacturing costs $14 per unit Administrative expenses, all fixed $20.00 per unit Ending inventories Direct materials-0- WIP -0 Finished goods 500 units What is cost of goods sold per unit using variable costing? $31.00 $45.00 O $23.00 $65.00

Explanation / Answer

The answer is $23.00 per unit.

Under variable costing, the cost of of goods sold will be the variable cost of production.

Therefore for the given question, the cost of goods sold per unit is $23.00.

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