Time Again,LLC produces and sells a mantel clock for $100 per unit.In 2017,42,125 clocks were produced and 37,958 were sold.Other information for the year includes:

What is the inventoriable cost per unit using variable costing?
A)$66.00
B)$51.50
C)$48.00
D)$103.50

Question

Time Again,LLC produces and sells a mantel clock for $100 per unit.In 2017,42,125 clocks were produced and 37,958 were sold.Other information for the year includes:

What is the inventoriable cost per unit using variable costing?
A)$66.00 
B)$51.50 
C)$48.00 
D)$103.50

Quizplus · Accepted Answer

Variable costing considers all variable manufacturing costs as inventoriable costs.Therefore,in this case,direct materials,direct manufacturing labor,and variable manufacturing costs will be considered as inventoriable cost.The total inventoriable cost = ($43 + $5 + $3.50)= $51.50

Time Again,LLC Produces and Sells a Mantel Clock for $100