Olds Inc. ,which produces a single product,has provided the following data for its most recent month of operations: There were no beginning or ending inventories.The absorption costing unit product cost was:
A)$97
B)$130
C)$99
D)$207

Question

Olds Inc. ,which produces a single product,has provided the following data for its most recent month of operations:  There were no beginning or ending inventories.The absorption costing unit product cost was:
A)$97 
B)$130 
C)$99 
D)$207

Quizplus · Accepted Answer

The absorption costing unit product cost can be calculated as follows:
Direct Materials + Direct Labor + Variable Manufacturing Overhead + Fixed Manufacturing Overhead per unit
= ($30 + $25 + $7 + $68)/1
= $130
Therefore, the best choice is B.

Olds Inc ,Which Produces a Single Product,has Provided the Following Data