Erie Corporation manufactures a single product that it sells for $35 per unit. The company has the following cost structure: There were no units in inventory at the beginning of the year. During the year 30,000 units were produced and 25,000 units were sold.
Under absorption costing, the unit product cost would be:
A) $8.00 per unit
B) $17.75 per unit
C) $13.00 per unit
D) $10.75 per unit

Question

Erie Corporation manufactures a single product that it sells for $35 per unit. The company has the following cost structure:  There were no units in inventory at the beginning of the year. During the year 30,000 units were produced and 25,000 units were sold.
Under absorption costing, the unit product cost would be:
A) $8.00 per unit 
B) $17.75 per unit 
C) $13.00 per unit 
D) $10.75 per unit

Quizplus · Accepted Answer

11eacbfc_c6c0_0002_8ffe_3f8d512c83e7_TB7552_00

Erie Corporation Manufactures a Single Product That It Sells for $35