Time Again, LLC produces and sells a mantel clock for $100 per unit. In 2017, 42,125 clocks were produced and 37,958 were sold. Other information for the year includes:

What is the inventoriable cost per unit using variable costing?
A) $66.00
B) $51.50
C) $48.00
D) $103.50

Question

Time Again, LLC produces and sells a mantel clock for $100 per unit. In 2017, 42,125 clocks were produced and 37,958 were sold. Other information for the year includes:

What is the inventoriable cost per unit using variable costing?
A) $66.00 
B) $51.50 
C) $48.00 
D) $103.50

Quizplus · Accepted Answer

Variable costing considers all variable manufacturing costs as inventoriable costs. Therefore, in this case, direct materials, direct manufacturing labor, and variable manufacturing costs will be considered as inventoriable cost. The total inventoriable cost = ($43 + $5 + $3.50) = $51.50

Time Again, LLC Produces and Sells a Mantel Clock for $100