Assume the following information for a company that produced 10,000 units and sold8,000 units during its first year of operations and produced 8,000 units and sold10,000 units during its second year of operations:Selling priceDirect materialsDirect laborVariable manufacturing overheadSales commissionFixed manufacturing overheadMultiple Choice$165.00$172.50Using absorption costing, what is the unit product cost for units produced during thesecond year of operations?$143.50Per Unit$ 200$75$135.00$ 50$ 10$8Per Year$ 300,000

Introduction:- Absorption costing considers all costs of manufacturing as product costs irrespective…

Answered: Using absorption costing, what is the…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...

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The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
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Using absorption costing, what is the unit product cost for units produced during the second year of operations?