Tornado Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $103 Units beginning inventory 0 Units produced Units sold 6,350 6,050 Units in ending inventory 300 Variable costs per unit: Direct materials $13 Direct labor $43 Variable manufacturing overhead $7 Variable selling and administrative $7 Fixed costs: Fixed manufacturing overhead $171,450 Fixed selling and administrative expenses $24,300 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. What is the unit product cost for the month under absorption costing?

Cornerstones of Cost Management (Cornerstones Series)
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Chapter2: Basic Cost Management Concepts
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Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Tornado Corporation, which has only one product, has provided the following data concerning its
most recent month of operations:
Selling price
$103
Units beginning inventory
0
Units produced
Units sold
6,350
6,050
Units in ending inventory
300
Variable costs per unit:
Direct materials
$13
Direct labor
$43
Variable manufacturing overhead
$7
Variable selling and administrative
$7
Fixed costs:
Fixed manufacturing overhead
$171,450
Fixed selling and administrative expenses $24,300
The company produces the same number of units every month, although the sales in units vary from
month to month. The company's variable costs per unit and total fixed costs have been constant
from month to month. What is the unit product cost for the month under absorption costing?
Transcribed Image Text:Tornado Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $103 Units beginning inventory 0 Units produced Units sold 6,350 6,050 Units in ending inventory 300 Variable costs per unit: Direct materials $13 Direct labor $43 Variable manufacturing overhead $7 Variable selling and administrative $7 Fixed costs: Fixed manufacturing overhead $171,450 Fixed selling and administrative expenses $24,300 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. What is the unit product cost for the month under absorption costing?
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