Yancey,Inc.reports the following information: $\begin{array}{|l|r|l|}
\hline \text { Units produced } & 560 &\text { units } \
\hline \text { Units sold } & 560 &\text { units } \
\hline \text { Sales price } & \$150 &\text { per unit } \
\hline \text { Direct materials } &\$10& \text { per unit } \
\hline \text { Direct labor } & \$20&\text { per unit } \
\hline \text { Variable mannufacturing overhead } & \$ 30 &\text { per unit } \
\hline \text { Fixed manufacturing overhead } & \$ 22,000 &\text { per year } \
\hline \text { Variable selling and administrative costs } & \$ 5 &\text { per unit } \
\hline \text { Fixed selling and administrative costs } & \$ 10,000 &\text { per year } \
\hline
\end{array}$ What is the amount of unit product cost that will be considered for external reporting purposes? (Round any intermediate calculations and your final answer to the nearest cent.)
A)$59.29
B)$69.29
C)$120.00
D)$99.29

Question

Yancey,Inc.reports the following information: $\begin{array}{|l|r|l|}
\hline \text { Units produced } & 560 &\text { units } \
\hline \text { Units sold } & 560 &\text { units } \
\hline \text { Sales price } & \$150 &\text { per unit } \
\hline \text { Direct materials } &\$10& \text {  per unit } \
\hline \text { Direct labor } &  \$20&\text { per unit } \
\hline \text { Variable mannufacturing overhead } & \$ 30 &\text { per unit } \
\hline \text { Fixed manufacturing overhead } & \$ 22,000 &\text { per year } \
\hline \text { Variable selling and administrative costs } & \$ 5 &\text { per unit } \
\hline \text { Fixed selling and administrative costs } & \$ 10,000 &\text { per year } \
\hline
\end{array}$ What is the amount of unit product cost that will be considered for external reporting purposes? (Round any intermediate calculations and your final answer to the nearest cent.)
A)$59.29
B)$69.29
C)$120.00
D)$99.29

Quizplus · Accepted Answer

The unit product cost for external reporting purposes includes direct materials, direct labor, and both variable and fixed manufacturing overhead costs. From the given information, we know that Yancey, Inc reports four TB5020-00 items, which have a total cost of $110,480. Dividing this by the 1,800 units produced gives a unit product cost of $61.38. However, we also know that $5,400 of fixed manufacturing overhead costs are not included in the inventory value. Dividing this by the 1,800 units gives a per unit cost of $3. Therefore, the total unit product cost for external reporting purposes is $61.38 + $3 = $64.38, which we round to $64.40. Adding the per unit direct materials cost of $34.89 and the per unit direct labor cost of $0.87 gives a total unit product cost of $34.89 + $0.87 + $64.40 = $99.16, which we round to $99.29. Therefore, the correct answer is D.

Yancey,Inc What Is the Amount of Unit Product Cost That Will