Financial accounting question Alpine Plastics manufactures synthetic rubber forautomotive parts. In 2024, their first year of operations,they produced 6,000 tons of rubber and sold 3,500 tons.In 2025, they produced 6,000 tons again and sold 7,000tons (selling all remaining inventory). For both years:.•Selling price: $1,800 per tonVariable manufacturing costs: $350 per tonVariable selling expenses: $400 per ton soldFixed manufacturing costs: $3,600,000 annuallyFixed administrative expenses: $450,000 annuallyCalculate the unit manufacturing cost under absorptioncosting for 2025.

Step 1: Definition of Absorption CostingAbsorption costing is a costing method that includes both…

Answered: Alpine Plastics manufactures synthetic…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 39P

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Subject: accounting
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Fast Track Auto produces and sells an auto part for S65 per unit. In 2020, 125,000 parts were produced and 80,000 units were sold. Other information for the year includes: Direct Materials $20 per unit Direct manufacturing labor $5 per unit Variable manufacturing costs $3 per unit Sales commissions $6 per part Fixed Manufacturing costs $790,000 per year Administrative expenses, all fixed $320,000 per year What is the inventoriable cost per unit using absorption costing? A. $28.00 B. $36.88 C. $34.32 D. $34.00
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