Elbrege Corporation manufactures a single product. The company has supplied the following data:
There was no beginning inventory. During the year 25,000 units were produced and 20,000 units were sold.
-Under absorption costing,the unit product cost would be:
A) $7 per unit
B) $16 per unit
C) $11 per unit
D) $10 per unit

Question

Elbrege Corporation manufactures a single product. The company has supplied the following data:
  There was no beginning inventory. During the year 25,000 units were produced and 20,000 units were sold.
-Under absorption costing,the unit product cost would be:
A) $7 per unit 
B) $16 per unit 
C) $11 per unit 
D) $10 per unit

Quizplus · Accepted Answer

Absorption costing unit product cost = $7 per unit + ($75,000 ÷ 25,000 units)
= $7 per unit + $3 per unit = $10 per unit

Elbrege Corporation Manufactures a Single Product