Answer the following questions using the information below:
The Mt Tambourine Company manufactures several different products.Unit costs associated with Product SK2040 are as follows:
$$\begin{array} { l r }
\text { Direct materials } & \$ 60 \
\text { Direct manufacturing labour } & 10 \
\text { Variable manufacturing overhead } & 18 \
\text { Fixed manufacturing overhead } & 32 \
\text { Sales commissions (2\% of sales) } & 4 \
\text { Administrative salaries } & \underline { 16 } \
\quad \text { Total } & \$ 140
\end{array}$$
-What are the inventoriable costs per unit associated with Product SK2040?
A)$120
B)$140
C)$88
D)$50

Question

Answer the following questions using the information below:
The Mt Tambourine Company manufactures several different products.Unit costs associated with Product SK2040 are as follows:
 $$\begin{array} { l r } 
\text { Direct materials } & \$ 60 \
\text { Direct manufacturing labour } & 10 \
\text { Variable manufacturing overhead } & 18 \
\text { Fixed manufacturing overhead } & 32 \
\text { Sales commissions (2\% of sales) } & 4 \
\text { Administrative salaries } & \underline { 16 } \
\quad \text { Total } & \$ 140
\end{array}$$
-What are the inventoriable costs per unit associated with Product SK2040?
A)$120
B)$140
C)$88
D)$50

Quizplus · Accepted Answer

Inventoriable costs include all costs necessary to acquire or manufacture a product and prepare it for sale, excluding selling and administrative expenses. For Product SK2040, these are direct materials ($60), direct manufacturing labor ($10), variable manufacturing overhead ($18), and fixed manufacturing overhead ($32), totaling $120 ($60 + $10 + $18 + $32 = $120).

Answer the Following Questions Using the Information Below: the Mt

Answer the Following Questions Using the Information Below:
the Mt