Answer the following questions using the information below:
Gloria's Decorating produces and sells a mantel clock for $80 per unit. In 2011, 50,000 clocks were produced and 40,000 were sold. Other information for the year includes:

-What is the inventoriable cost per unit using absorption costing?
A)$32
B)$35
C)$60
D)$80

Question

Answer the following questions using the information below:
Gloria's Decorating produces and sells a mantel clock for $80 per unit. In 2011, 50,000 clocks were produced and 40,000 were sold. Other information for the year includes:
 
-What is the inventoriable cost per unit using absorption costing?
A)$32 
B)$35 
C)$60 
D)$80

Quizplus · Accepted Answer

Absorption costing includes all manufacturing costs (direct materials, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.

Answer the Following Questions Using the Information Below