Moskowitz Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 91 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 13 Direct labor $ 7 Variable manufacturing overhead $ 3 Fixed manufacturing overhead per year $ 480,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 6 Fixed selling and administrative expense per year $ 84,000 Year 1 Year 2 Units in beginning inventory 0 3,000 Units produced during the year 12,000 10,000 Units sold during the year 9,000 10,000 Units in ending inventory 3,000 3,000 The unit product cost under variable costing in Year 1 is closest to: $29.00 $23.00 $69.00 $63.00
Moskowitz Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 91 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 13 Direct labor $ 7 Variable manufacturing overhead $ 3 Fixed manufacturing overhead per year $ 480,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 6 Fixed selling and administrative expense per year $ 84,000 Year 1 Year 2 Units in beginning inventory 0 3,000 Units produced during the year 12,000 10,000 Units sold during the year 9,000 10,000 Units in ending inventory 3,000 3,000 The unit product cost under variable costing in Year 1 is closest to: $29.00 $23.00 $69.00 $63.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Moskowitz Corporation has provided the following data for its two most recent years of operation:
The unit product cost under variable costing in Year 1 is closest to:
| Selling price per unit | $ | 91 |
| Variable manufacturing cost per unit produced: | ||
| Direct materials | $ | 13 |
| Direct labor | $ | 7 |
| Variable manufacturing |
$ | 3 |
| Fixed manufacturing overhead per year | $ | 480,000 |
| Selling and administrative expenses: | ||
| Variable selling and administrative expense per unit sold | $ | 6 |
| Fixed selling and administrative expense per year | $ | 84,000 |
| Year 1 | Year 2 | |
| Units in beginning inventory | 0 | 3,000 |
| Units produced during the year | 12,000 | 10,000 |
| Units sold during the year | 9,000 | 10,000 |
| Units in ending inventory | 3,000 | 3,000 |
The unit product cost under variable costing in Year 1 is closest to:
|
$29.00
|
||
|
$23.00
|
||
|
$69.00
|
||
|
$63.00
|
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