Reference: 08-15
Jimbob Co There Were No Beginning Inventories

Reference: 08-15
Jimbob Co.'s records include the following information for the month of January: $$\begin{array} { | l | l | l | } \hline \text { Units manufactured } & & 5,000 \\\hline \text { Units sold } && 4,000 \\\hline \text { Selling price per unit } & &\$ 50 \\\hline \text { Variable manufacturing costs per unit: } & \\\hline \text { Direct materials } & & \$ 5 \\\hline \text { Direct labour } && \$ 2 \\\hline \text { Manufacturing overhead } & &\$ 1 \\\hline \begin{array} { l } \text { Variable selling and administrative expenses per } \\\text { unit sold }\end{array} && \$ 1 \\\hline \text { Total fixed costs: } & & \\\hline \text { Manufacturing overhead } && \$ 10,000 \\\hline \text { Selling and administrative expenses } && \$ 20,000 \\\hline\end{array}$$ There were no beginning inventories.
-Using absorption costing, what is the cost per unit manufactured in January

A) $11.00.
B) $10.00.
C) $9.00.
D) $12.00.