Elbrege Corporation manufactures a single product. The company has supplied the following data: Selling price per unit $ 30 Variable costs per unit: Production $ 7 Selling and administrative $ 4 Fixed costs per year: Production $ 75,000 Selling and administrative $ 50,000 There was no beginning inventory. During the year 25,000 units were produced and 20,000 units were sold. Under absorption costing, the unit product cost would be:
Elbrege Corporation manufactures a single product. The company has supplied the following data: Selling price per unit $ 30 Variable costs per unit: Production $ 7 Selling and administrative $ 4 Fixed costs per year: Production $ 75,000 Selling and administrative $ 50,000 There was no beginning inventory. During the year 25,000 units were produced and 20,000 units were sold. Under absorption costing, the unit product cost would be:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Elbrege Corporation manufactures a single product. The company has supplied the following data:
There was no beginning inventory. During the year 25,000 units were produced and 20,000 units were sold.
Under absorption costing, the unit product cost would be:
| Selling price per unit | $ | 30 |
| Variable costs per unit: | ||
| Production | $ | 7 |
| Selling and administrative | $ | 4 |
| Fixed costs per year: | ||
| Production | $ | 75,000 |
| Selling and administrative | $ | 50,000 |
There was no beginning inventory. During the year 25,000 units were produced and 20,000 units were sold.
Under absorption costing, the unit product cost would be:
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