What is the cost of goods sold per unit under absorption costing? General accounting question Williams Custom Chairs manufactures chairs specifically for corporate offices andonly accepts bulk orders. Each chair sells for $450 after negotiations. In February,the company manufactures 5,000 chairs and sells 3,800 chairs. Actual fixed costsare equal to budgeted fixed costs for the month.The following data is provided for February:Variable manufacturing costs: $220 per unit••Fixed manufacturing costs: $150,000 per month•Fixed administrative expenses: $45,000 per monthAt the end of February, Williams Custom Chairs has 1,200 units remaining infinished goods inventory. The company also incurs a sales commission of $15 perunit.What is the cost of goods sold per unit under absorption costing?

Step 1: Define Absorption CostingAbsorption costing is a costing approach that includes all direct…

Answered: Williams Custom Chairs manufactures…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 1COMP

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