Mariah is compiling annual financial statements for her business. She uses absorption costing, as per GAAP. Budgeted variable manufacturing costs are $10 per unit and variable operating costs are $2 per unit. Budgeted fixed MOH is $50,000, and budgeted operating costs are $20,000. If she plans to produce 10,000 units, how much cost should be capitalized to inventory for each unit produced?

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The Answer of Mariah is compiling annual financial statements for her business. She uses absorption costing, as per GAAP. Budgeted variable manufacturing costs are $10 per unit and variable operating costs are $2 per unit. Budgeted fixed MOH is $50,000, and budgeted operating costs are $20,000. If she plans to produce 10,000 units, how much cost should be capitalized to inventory for each unit produced?

Mariah Is Compiling Annual Financial Statements for Her Business