Beamish Incorporated, which produces a single product, has provided the following data for its most recent month of operations: There were no beginning or ending inventories. The absorption costing unit product cost was:

A) $132 per unit
B) $168 per unit
C) $135 per unit
D) $248 per unit

Question

Beamish Incorporated, which produces a single product, has provided the following data for its most recent month of operations:

There were no beginning or ending inventories. The absorption costing unit product cost was:

A) $132 per unit
B) $168 per unit
C) $135 per unit
D) $248 per unit

Pookkie Piyawan · Accepted Answer

Final Answer : B, Explanation :  The absorption costing unit product cost is calculated by adding up all the variable and fixed costs per unit.Variable cost per unit:Direct materials per unit: $40Direct labor per unit: $28Variable manufacturing overhead per unit: $6Total variable cost per unit: $74Fixed cost per unit:Fixed manufacturing overhead per unit: $94Total cost per unit:Variable cost per unit + Fixed cost per unit = $74 + $94 = $168Therefore, the absorption costing unit product cost is $168 per unit, so the correct answer is B.

Beamish Incorporated, which produces a single product, has provided the following data for its most recent month of operations: There were no beginning or ending inventories. The absorption costing unit product cost was:

A) $132 per unit
B) $168 per unit
C) $135 per unit
D) $248 per unit

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Beamish Incorporated, which produces a single product, has provided the following data for its most recent month of operations: There were no beginning or ending inventories. The absorption costing unit product cost was:A) $132 per unitB) $168 per unitC) $135 per unitD) $248 per unit

Definitions

Learning Objectives

Learning Objectives

Related questions

Beamish Incorporated, which produces a single product, has provided the following data for its most recent month of operations: There were no beginning or ending inventories. The absorption costing unit product cost was:

A) $132 per unit
B) $168 per unit
C) $135 per unit
D) $248 per unit