Answer the following questions using the information below:
Kory's Auto produces and sells an auto part for $60.00 per unit. In 2011, 100,000 parts were produced and 75,000 units were sold. Other information for the year includes:

-What is the inventoriable cost per unit using absorption costing?
A)$30.00
B)$36.00
C)$37.50
D)$43.50

Question

Answer the following questions using the information below:
Kory's Auto produces and sells an auto part for $60.00 per unit. In 2011, 100,000 parts were produced and 75,000 units were sold. Other information for the year includes:
 
-What is the inventoriable cost per unit using absorption costing?
A)$30.00 
B)$36.00 
C)$37.50 
D)$43.50

Quizplus · Accepted Answer

Absorption costing includes all manufacturing costs (direct materials, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product. The inventoriable cost per unit is calculated by adding these costs together and dividing by the number of units produced.

Answer the Following Questions Using the Information Below