Circetrax,Inc.has provided the following financial information for the year: $$\begin{array} { | l | r | }
\hline \text { Finished Goods Inventory: } & \
\hline \text { Beginning balance, in units } & 610 \
\hline \text { Units produced } & 2800 \
\hline \text { Units sold } & 2900 \
\hline \text { Ending balance, in units } & 510 \
\hline \text { Production costs: } &\
\hline \text { Variable manufacturing costs per unit } & \$ 50 \
\hline \text { Total fixed manufacturing costs } & \$ 42,000\
\hline
\end{array}$$ What is the unit product cost for the year using absorption costing?
A) $65
B) $82
C) $119
D) $64

Question

Circetrax,Inc.has provided the following financial information for the year: $$\begin{array} { | l | r | } 
\hline \text { Finished Goods Inventory: } & \
\hline \text { Beginning balance, in units } & 610 \
\hline \text { Units produced } & 2800 \
\hline \text { Units sold } & 2900 \
\hline \text { Ending balance, in units } & 510 \
\hline \text { Production costs: } &\
\hline \text { Variable manufacturing costs per unit } &  \$ 50 \ 
\hline \text { Total fixed manufacturing costs } &  \$ 42,000\
\hline
\end{array}$$ What is the unit product cost for the year using absorption costing?
A) $65
B) $82
C) $119
D) $64

Quizplus · Accepted Answer

The unit product cost using absorption costing is calculated by dividing the total manufacturing costs by the total number of units produced. The total manufacturing costs include both variable and fixed manufacturing costs. In this case, the variable manufacturing costs are $50 per unit and the total fixed manufacturing costs are $42,000. The total number of units produced is 2800. Therefore, the unit product cost is ($50 x 2800 + $42,000) / 2800 = $65.

Circetrax,Inc What Is the Unit Product Cost for the Year Using