Johnston Corporation manufactures a single product that it sells for $30 per unit. The company has the following cost structure: Last year there was no beginning inventory. During the year, 20,000 units were produced and 17,000 units were sold. Under absorption costing, the unit product cost would be:
A)$20 per unit
B)$12 per unit
C)$13 per unit
D)$8 per unit

Question

Johnston Corporation manufactures a single product that it sells for $30 per unit. The company has the following cost structure:  Last year there was no beginning inventory. During the year, 20,000 units were produced and 17,000 units were sold. Under absorption costing, the unit product cost would be:
A)$20 per unit 
B)$12 per unit 
C)$13 per unit 
D)$8 per unit

Quizplus · Accepted Answer

The Answer of Johnston Corporation manufactures a single product that it sells for $30 per unit. The company has the following cost structure:  Last year there was no beginning inventory. During the year, 20,000 units were produced and 17,000 units were sold. Under absorption costing, the unit product cost would be:
A)$20 per unit 
B)$12 per unit 
C)$13 per unit 
D)$8 per unit

Johnston Corporation Manufactures a Single Product That It Sells for $30