Betsy's Pies,Inc.has provided the following financial information for the year: $$\begin{array} { | l | r | }
\hline \text { Finished Goods Inventory: } & \
\hline \text { Beginning balance, in units } & 640 \
\hline \text { Units produced } & 2100 \
\hline \text { Units sold } & 2200 \
\hline \text { Ending balance, in units } & 540 \
\hline \text { Production Costs: } & \
\hline \text { Variable manufacturing costs per unit } & \$ 60 \
\hline \text { Total fixed manufacturing costs } & \$ 33,600 \
\hline
\end{array}$$ What is the unit product cost for the year using variable costing?
A) $76
B) $15
C) $60
D) $62

Question

Betsy's Pies,Inc.has provided the following financial information for the year: $$\begin{array} { | l | r | } 
\hline \text { Finished Goods Inventory: } & \
\hline \text { Beginning balance, in units } & 640 \
\hline \text { Units produced } & 2100 \
\hline \text { Units sold } & 2200 \
\hline \text { Ending balance, in units } & 540 \
\hline \text { Production Costs: } & \ 
\hline \text { Variable manufacturing costs per unit } & \$ 60 \
\hline \text { Total fixed manufacturing costs } & \$ 33,600 \
\hline
\end{array}$$ What is the unit product cost for the year using variable costing?
A) $76
B) $15
C) $60
D) $62

Quizplus · Accepted Answer

Using the variable costing method, the unit product cost is calculated as follows:
Variable production cost per unit = Direct materials + Direct labor + Variable manufacturing overhead
= $30 + $10 + $20 = $60/unit.

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