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Question

O AB htps:/newconnect.mheducation.com/ onnect.mheducation.com/flow/connect.html EXAM 3 (CH5&6 23 Moskowte Corporation hes provided the 23 Corporation has the following data for its two most recent years t of operation Selling price per unit s 91 Manufacturing costs: riable sanufacturing cost per unit produced: Direct materials Direct labor Variable manufacturing overhead s 13 Fixed manufacturing overhead per year $488,880 Selling and administrative expenses Variable selling and administrative expense per unít sold Fixed selling and administrative expense per year 84,000 Units in beginning inventory Units produced during the year Units sold during the year Units in ending inventory Year 1 Year 2 3,80 12,000 18,e00 9,800 10,000 3,000 3,00 The unlt product cost under sbsorpeion costing in Year 2 is closest to: Multiple Choice $48 00 $23.00 $7100 $72.00

Explanation / Answer

Unit product cost under absorption costing for year 2 :

so answer is c) $71.00

Direct material 13 Direct labour 7 Variable manufacturing overhead 3 Fixed manufacturing overhead (480000/10000) 48 Total unit product cost 71

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