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Camile Company has no beginning and ending inventories, and reports the following data about its only product:   Direct materials used                             $100,000 Direct labor                                              $80,000 Fixed indirect manufacturing                  $50,000 Fixed selling and administrative            $220,000 Variable indirect manufacturing              $20,000 Variable selling and administrative         $75,000 Selling price(per unit)                                     $84   Units produced and sold                            10,000   Camile Company uses the absorption approach to prepare the income statement. What is the product cost per unit? A) $20 B) $25 C) $27.50 D) $32.50

Camile Company has no beginning and ending inventories, and reports the following data about its only product:   Direct materials used                             $100,000 Direct labor                                              $80,000 Fixed indirect manufacturing                  $50,000 Fixed selling and administrative            $220,000 Variable indirect manufacturing              $20,000 Variable selling and administrative         $75,000 Selling price(per unit)                                     $84   Units produced and sold                            10,000   Camile Company uses the absorption approach to prepare the income statement. What is the product cost per unit? A) $20 B) $25 C) $27.50 D) $32.50

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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Camile Company has no beginning and ending inventories, and reports the following data about its only product:

 

Direct materials used                             $100,000

Direct labor                                              $80,000

Fixed indirect manufacturing                  $50,000

Fixed selling and administrative            $220,000

Variable indirect manufacturing              $20,000

Variable selling and administrative         $75,000

Selling price(per unit)                                     $84

 

Units produced and sold                            10,000

 

Camile Company uses the absorption approach to prepare the income statement. What is the product cost per unit?

  1. A) $20
  2. B) $25
  3. C) $27.50
  4. D) $32.50
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