# Calculating Unit Product Cost Using Absorption CostingMartin Company had the following costs:*(Click on the icon to view the data.)*Calculate the unit product cost using absorption costing. Round your answer to the nearest cent.## Input Section for Absorption CostingSelect the labels and enter the amounts to compute the unit product cost using absorption costing:- **Direct materials**: 71- **Direct labor**: 40- **Variable manufacturing overhead**: (Input needed)- **Fixed manufacturing overhead**: (Input needed)**Total unit product cost**: (To be calculated)## Data Table- **Units produced**: 320 units- **Direct materials**: $71 per unit- **Direct labor**: $40 per unit- **Variable manufacturing overhead**: $13 per unit- **Fixed manufacturing overhead**: $7,360 per year- **Variable selling and administrative costs**: $22 per unit- **Fixed selling and administrative costs**: $1,920 per yearTo compute the unit product cost using absorption costing, include direct materials, direct labor, variable manufacturing overhead, and allocated fixed manufacturing overhead. The total unit cost will provide insights into the overall expenses associated with producing each unit.

The cost can be classified into two categories i.e product cost and period cost. The product cost is those which are directly concerned with the cost of goods sold such as direct material, direct labor, overhead cost, and the period cost is that can not be capitalized into prepaid, inventory, or fixed cost. Fixed manufacturing overhead = Total Fixed manufacturing cost/Total no. of units for the year = 7,360 / 320 = 23

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Calculate the unit product cost using absorption costing. Round your answer to the nearest cent. Select the labels and enter the amounts to compute the unit product cost using absorption costing. Direct materials 71 Direct labor 40 Variable manufacturing overhead Fixed manufacturing overhead Total unit product cost

Calculate the unit product cost using absorption costing. Round your answer to the nearest cent. Select the labels and enter the amounts to compute the unit product cost using absorption costing. Direct materials 71 Direct labor 40 Variable manufacturing overhead Fixed manufacturing overhead Total unit product cost

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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