Khanam Corporation, which has only one product, has provided the following data
ID: 2448012 • Letter: K
Question
Khanam Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.
What is the unit product cost for the month under absorption costing?
$126 per unit
$99 per unit
$118 per unit
$145 per unit
selling price 151 units in beginning inventory 0 units produced 6950 units sold 6650 unites in ending inventory 300 variable cost per unit: direct materials 25 direct labor 55 variable manufacturing overhead 19 variable selling and administrative 19 fixed costs fixed manufactiring overhead 187,650 fixed selling and administrative 27,900Explanation / Answer
Total fixed costs= 187650+27900= 215550
Fixed cost per unit=27
Unit product cost= variable cost per unit + Fixed cost per unit=25+55+19+19+27=$145
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