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Calculate the production cost per unit under absorption and variable costing assuming direct material cost was $15 per unit, direct labor cost $13.50 per unit, variable overhead $6 per unit, and fixed overhead costs were $220,000. The company had a beginning finished goods inventory of 10,000 units, produced 80,000 units this period, and sold 85,000 units.

Calculate the production cost per unit under absorption and variable costing assuming direct material cost was $15 per unit, direct labor cost $13.50 per unit, variable overhead $6 per unit, and fixed overhead costs were $220,000. The company had a beginning finished goods inventory of 10,000 units, produced 80,000 units this period, and sold 85,000 units.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Calculate the production cost per unit under absorption and variable costing assuming direct material cost was $15 per unit, direct labor cost $13.50 per unit, variable overhead $6 per unit, and fixed overhead costs were $220,000. The company had a beginning finished goods inventory of 10,000 units, produced 80,000 units this period, and sold 85,000 units.
Transcribed Image Text:Calculate the production cost per unit under absorption and variable costing assuming direct material cost was $15 per unit, direct labor cost $13.50 per unit, variable overhead $6 per unit, and fixed overhead costs were $220,000. The company had a beginning finished goods inventory of 10,000 units, produced 80,000 units this period, and sold 85,000 units.
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