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

The Answer of 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

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