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Dahasolnce [82]
3 years ago
11

Dorglass Incorporated reported the following information about the production and sale of its only product during the first mont

h of operations: Selling price per unit $225 Sales $360,000 Direct materials used $176,000 Direct labor $100,000 Variable factory overhead $44,000 Fixed factory overhead $80,000 Variable selling and administrative expenses $20,000 Fixed selling and administrative expenses $10,000 Ending inventory, Direct Materials 0 Ending inventory, Work-in-process 0 Ending inventory, Finished Goods 400 units Under Variable Costing, the Product (Inventoriable) Cost per unit is ________. A. $225 B. $160 C. $200 D. $170
Business
1 answer:
IrinaVladis [17]3 years ago
4 0

Answer:

B. $160

Explanation:

For computing the product cost per unit first we have to find out the total number of units which is

= $360,000 ÷ $225 + 400 units

= 1,600 units + 400 units

= 2,000 units

Now the product cost per unit is

= (Direct material used + direct labor + variable factory overhead)  ÷ ( total units)

= ($176,000 + $100,000 + $44,000) ÷ (2,000 units)

= ($320,000)  ÷ (2,000 units)

= $160

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