Paula Corporation reports the following for this month: The beginning inventory is 30 units. It produces 140 units during this month. And 150 units are sold at $3,000 each. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 200 units, the same every month. Variable costs: manufacturing cost per unit = $100; the operating cost per unit = $20 Total Fixed costs: budgeted manufacturing costs = $7,000; operating costs = $36,000 How much is the unit product cost if the company uses absorption costing? $100 $120 $150 $335 $315 $135

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Paula Corporation reports the following for this month:
The beginning inventory is 30 units. It produces 140 units during this month. And
150 units are sold at $3,000 each. The budgeted level of production used to
calculate the budgeted fixed manufacturing cost per unit is 200 units, the same
every month.
Variable costs: manufacturing cost per unit = $100; the operating cost per unit = $20
Total Fixed costs: budgeted manufacturing costs = $7,000; operating costs =
$36,000
How much is the unit product cost if the company uses absorption costing?
$100
$120
$150
$335
$315
$135
Transcribed Image Text:Paula Corporation reports the following for this month: The beginning inventory is 30 units. It produces 140 units during this month. And 150 units are sold at $3,000 each. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 200 units, the same every month. Variable costs: manufacturing cost per unit = $100; the operating cost per unit = $20 Total Fixed costs: budgeted manufacturing costs = $7,000; operating costs = $36,000 How much is the unit product cost if the company uses absorption costing? $100 $120 $150 $335 $315 $135
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