The Southern Corporation manufactures a single product and has the following cost structure: Last year, 7,000 units were produced and 6,800 units were sold. There was no beginning inventory.
Under variable costing, the unit product cost would be:
A) $38 per unit
B) $52 per unit
C) $58 per unit
D) $70 per unit

Question

The Southern Corporation manufactures a single product and has the following cost structure:  Last year, 7,000 units were produced and 6,800 units were sold. There was no beginning inventory.
Under variable costing, the unit product cost would be:
A) $38 per unit 
B) $52 per unit 
C) $58 per unit 
D) $70 per unit

Quizplus · Accepted Answer

Under variable costing, the unit product cost is the variable production cost of $38 per unit.

The Southern Corporation Manufactures a Single Product and Has the Following