A manufacturing company that produces a single product has provided the followin

Question

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price $147 Units in beginning inventory 0 Units produced 11,000 Units sold 5,500 Units in ending inventory 5,500 Variable costs per unit: Direct materials $36.00 Direct labor $37.00 Variable manufacturing overhead $7.00 Variable selling and administrative $9.00 Fixed costs: Fixed manufacturing overhead $215,000 Fixed selling and administrative $94,200 What is the total period cost for the month under absorpion costing?

Explanation / Answer

Total period cost for the month under absorpion costing= Variable selling and administrative cost + Fixed selling and administrative cost=(9*5500) + $94,200 = $143.700

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