Answer the following questions using the information below: part for $30.00 pe s

Question

Answer the following questions using the information below: part for $30.00 pe sold. Other fenn nufor 0 ent. In 20X53,10,000 parts were produced and 75,000 units were sold. Other information for the year includes: Direct materials Direct manufacturing labor Variable manufacturing costs Sales commissions Fixed manufacturing costs Administrative expenses, all fixed $12.00 per unit $ 2.25 per unit $ 0.75 per unit $ 3.00 per part $375,000 per year $135,000 per year 6) What is the inventoriable cost per unit using absorption costing? C) $18.75 6) A) $15.00 E) none of the above. B) $18.00 D) $21.75

Explanation / Answer

Solution:

Direct material = $12 per unit

Direct labour = $2.25 per unit

Variable manufacturing Costs = $0.75 per unit

Fixed Manufacturing Cost = $375,000 per year

Fixed manufacturing cost per unit = 375000/100000 = $3.75 per unit

Inventoriable cost = Direct material + Direct Labour + Variable manufacturing cost + Fixed manufacturing cost

= $12 + $2.25 + $0.75 + $3.75 = $18,75 per unit

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.