Betsy's Pies, Inc. has provided the following financial information for the year: $$\begin{array} { | l | r | }
\hline \text { Finished Goods Inventory: } & \
\hline \text { Beginning balance, in units } & 620 \
\hline \text { Units produced } & 2100 \
\hline \text { Units sold } & 2200 \
\hline \text { Ending balance, in units } & 520 \
\hline \text { Production Costs: } & \
\hline \begin{array} { l }
\text { Variable manufacturing costs per } \
\text { unit }
\end{array} & \$ 50\
\hline \text { Total fixed manufacturing costs } &\$ 42,000 \
\hline
\end{array}$$ What is the unit product cost for the year using variable costing?
A) $70
B) $19
C) $50
D) $81

Question

Betsy's Pies, Inc. has provided the following financial information for the year: $$\begin{array} { | l | r | } 
\hline \text { Finished Goods Inventory: } & \
\hline \text { Beginning balance, in units } & 620 \
\hline \text { Units produced } & 2100 \
\hline \text { Units sold } & 2200 \
\hline \text { Ending balance, in units } & 520 \
\hline \text { Production Costs: } & \
\hline \begin{array} { l } 
\text { Variable manufacturing costs per } \
\text { unit }
\end{array} &  \$ 50\ 
\hline \text { Total fixed manufacturing costs } &\$ 42,000  \
\hline
\end{array}$$ What is the unit product cost for the year using variable costing?
A) $70
B) $19
C) $50
D) $81

Quizplus · Accepted Answer

Under variable costing, the unit product cost includes only the variable costs. The given variable manufacturing cost per unit is $50, which directly answers the question. Fixed costs are not included in the unit product cost under variable costing.

Betsy's Pies, Inc What Is the Unit Product Cost for the Year Using