Give true solution for this accounting question Lily's Pastries produces cupcakes, which sell for $5.30 each. During the currentmonth, Lily produced 3,100 cupcakes, but only sold 2,700 cupcakes. Thevariable cost per cupcake was $3.00 and the sales commission per cupcake was$0.40. Total fixed manufacturing costs were $1,700 and total fixed marketingand administrative costs were $1,400. What is the product cost per cupcakeunder absorption costing?A. $5.30B. $3.00C. $3.55D. $5.85

Step 1: Define Absorption CostingUnder absorption costing, not only the variable cost but also the…

Answered: Lily's Pastries produces cupcakes,…

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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Legrand Company produces hand cream. In 2018, their financial information is as follows:Each jar sells for: $3.40Total variable cost (materials, labor, and overhead) per jar: $2.55Total fixed cost: $58,140Total jars sold in 2018: 81,6001. Calculate the break-even sales dollar?
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