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19 August, 06:54

Baughn Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price $ 115

Units in beginning inventory 0

Units produced 6,600

Units sold 6,400

Units in ending inventory 200

Variable costs per unit:

Direct materials $ 26

Direct labor $ 46

Variable manufacturing overhead $ 7

Variable selling and administrative expense $ 9

Fixed costs:

Fixed manufacturing overhead $ 105,600

Fixed selling and administrative expense $ 51,200

What is the unit product cost for the month under absorption costing? a. $79 per unitb. $95 per unitc. $104 per unitd. $88 per unit

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Answers (1)
  1. 19 August, 07:25
    0
    Option "B" is the correct answer to the following question.

    Explanation:

    Computation of unit product cost for the month (Using absorption costing method.)

    Particulars Amount

    Direct materials $26

    Direct labor $46

    Variable manufacturing overhead $7

    Fixed Manufacturing cost

    ($105,600 / 6,600) $16

    Total Product Cost per unit $95
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