During July, Roy Co. produced 10,000 units. Costs incurred by Roy during the month were as follows:$\begin{array}{lrr}
\text { Direct materials } &£ 10,000\
\text { Direct labour.} &20,000\
\text { Variable manufacturing overhead. } &6,000\
\text {Variable selling and administrative. } &3,000\
\text { Fixed manufacturing overhead. } &9,000\
\text { Fixed selling and administrative. } &4,000\
\text {Total.}&£61,000
\end{array}$

Under absorption costing, any unsold units would be carried in the stock account at a unit product cost of

Question

During July, Roy Co. produced 10,000 units. Costs incurred by Roy during the month were as follows:$\begin{array}{lrr}
  \text { Direct materials } &£ 10,000\
 \text {  Direct labour.} &20,000\
 \text { Variable manufacturing overhead. } &6,000\
 \text {Variable selling and administrative.  } &3,000\
 \text { Fixed manufacturing overhead. } &9,000\
 \text { Fixed selling and administrative. } &4,000\
 \text {Total.}&£61,000
\end{array}$

Under absorption costing, any unsold units would be carried in the stock account at a unit product cost of

Quizplus · Accepted Answer

Under absorption costing, the unit product cost includes all manufacturing costs (direct materials, direct labor, variable manufacturing overhead, and fixed manufacturing overhead). The calculation is: (£10,000 + £20,000 + £6,000 + £9,000) / 10,000 units = £4.50 per unit. However, there seems to be a mistake in the provided choices and explanation, as none of the choices match the calculated value of £4.50. Given the options, the closest correct approach to calculate would involve a reevaluation of the provided data or choices.

During July, Roy Co Under Absorption Costing, Any Unsold Units Would Be Carried in Roy