Answer:
The cost per unit of finished goods under absorption costing is $28.50
Therefore, the correct option is d. $28.50
Explanation:
Absorption costing : Under absorption costing, all types of cost is to be recorded whether it is fixed or variable.
The computation of cost per unit of finished goods is shown below:
= Total cost ÷ units produced
where,
total cost is = direct material + direct labor + variable overhead + fixed overhead
= $9 × 25,000 units + $11 × 25,000 units + $75,000 + $137,500
= $225,000 + $275,000 +$75,000 + $137,500
= $712,500
And, units produced is 25,000 units.
So, cost per unit = $712,500 ÷ 25,000 units
= $28.50
Hence, the cost per unit of finished goods under absorption costing is $28.50
Therefore, the correct option is d. $28.50
