A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price $ 133 Units in beginning inventory 0 Units produced 7,000 Units sold 6,800 Units in ending inventory 200 Variable costs per unit: Direct materials $ 41 Direct labor $ 57 Variable manufacturing overhead $ 5 Variable selling and administrative expense $ 4 Fixed costs: Fixed manufacturing overhead $ 133,000 Fixed selling and administrative expense $ 34,000 What is the total period cost for the month under absorption costing? $133,000 $194,200 $34,000 $61,200
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price $ 133 Units in beginning inventory 0 Units produced 7,000 Units sold 6,800 Units in ending inventory 200 Variable costs per unit: Direct materials $ 41 Direct labor $ 57 Variable manufacturing overhead $ 5 Variable selling and administrative expense $ 4 Fixed costs: Fixed manufacturing overhead $ 133,000 Fixed selling and administrative expense $ 34,000 What is the total period cost for the month under absorption costing? $133,000 $194,200 $34,000 $61,200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
What is the total period cost for the month under absorption costing?
| Selling price | $ | 133 |
| Units in beginning inventory | 0 | |
| Units produced | 7,000 | |
| Units sold | 6,800 | |
| Units in ending inventory | 200 | |
| Variable costs per unit: | ||
| Direct materials | $ | 41 |
| Direct labor | $ | 57 |
| Variable manufacturing |
$ | 5 |
| Variable selling and administrative expense | $ | 4 |
| Fixed costs: | ||
| Fixed manufacturing overhead | $ | 133,000 |
| Fixed selling and administrative expense | $ | 34,000 |
What is the total period cost for the month under absorption costing?
|
$133,000
|
||
|
$194,200
|
||
|
$34,000
|
||
|
$61,200
|
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