Last year,Adara Company produced 5000 units and sold 3000 units.The company had no beginning inventory.They incurred the following costs:

Adara's product cost per unit under absorption costing is

Name: Last year,Adara Company produced 5000 units and sold 3000 units.The company had no beginning inventory.They incurred the following costs: Adara's product cost per unit under absorption costing is
Brand: Quizplus
Rating: 4.9 (48 reviews)

Question

Last year,Adara Company produced 5000 units and sold 3000 units.The company had no beginning inventory.They incurred the following costs:

Adara's product cost per unit under absorption costing is

Quizplus · Accepted Answer

A)
Fixed cost per unit = 20,000/5000 = $4
Total unit cost = $13 + $7 + $4 + $4 = $28

Last Year,Adara Company Produced 5000 Units and Sold 3000 Units