Precision Plastics produces specialized polymer sheets for industrial use. In 2022, its first year of operations, the company produced 6,000 tons of polymer sheets but sold only 3,500 tons. In 2023, it again produced 6,000 tons and sold 8,500 tons (clearing all its inventory). Additional data: • Selling price per ton: $2,500 • Variable manufacturing cost per ton: $500 • Variable selling expenses per ton: $700 • Fixed manufacturing costs: $3,000,000 • Fixed administrative expenses: $750,000 What is the unit manufacturing cost under absorption costing in 2022?

Precision Plastics produces specialized polymer sheets for industrial use. In 2022, its first year of operations, the company produced 6,000 tons of polymer sheets but sold only 3,500 tons. In 2023, it again produced 6,000 tons and sold 8,500 tons (clearing all its inventory). Additional data: • Selling price per ton: $2,500 • Variable manufacturing cost per ton: $500 • Variable selling expenses per ton: $700 • Fixed manufacturing costs: $3,000,000 • Fixed administrative expenses: $750,000 What is the unit manufacturing cost under absorption costing in 2022?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter17: Activity Resource Usage Model And Tactical Decision Making

Section: Chapter Questions

Problem 31P: Morrill Company produces two different types of gauges: a density gauge and a thickness gauge. The...

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