Answer the following questions using the information below:
Healesville Animates produces and sells a luxury animal pillow for $40.00 per unit.In the first month of operation,3000 units were produced and 2250 units were sold.Actual fixed costs are the same as the amount budgeted for the month.Other information for the month includes:
$\begin{array}{ll}
\text { Variable manufacturing costs } & \$ 19 \text { per unit } \
\text { Variable marketing costs } & \$ 1 \text { per unit } \
\text { Fixed manufacturing costs } & \$ 30000 \text { per month } \
\text { Administrative expenses, all fixed } & \$ 6000 \text { per month } \
\text { Ending inventories: } &\text { Direct materials } & -0- \
\text { WIP } & -0- \
\text { Finished goods } & 750 \text { units }
\end{array}$
-What is cost of goods sold per unit when using absorption costing?
A)$19
B)$20
C)$29
D)$32

Question

Answer the following questions using the information below:
Healesville Animates produces and sells a luxury animal pillow for $40.00 per unit.In the first month of operation,3000 units were produced and 2250 units were sold.Actual fixed costs are the same as the amount budgeted for the month.Other information for the month includes:
 $\begin{array}{ll}
\text { Variable manufacturing costs } & \$ 19 \text { per unit } \
\text { Variable marketing costs } & \$ 1 \text { per unit } \
\text { Fixed manufacturing costs } & \$ 30000 \text { per month } \
\text { Administrative expenses, all fixed } & \$ 6000 \text { per month } \
\text { Ending inventories: } &\text { Direct materials } & -0- \
\text { WIP } & -0- \
\text { Finished goods } & 750 \text { units }
\end{array}$
-What is cost of goods sold per unit when using absorption costing?
A)$19
B)$20
C)$29
D)$32

Quizplus · Accepted Answer

Under absorption costing, the cost of goods sold (COGS) per unit includes variable manufacturing costs, fixed manufacturing costs allocated per unit, and does not include variable marketing costs or administrative expenses. The calculation is as follows: Variable manufacturing cost per unit = $19 Fixed manufacturing cost per unit = $30,000 / 3,000 units = $10 Total COGS per unit = $19 (variable) + $10 (fixed) = $29

Answer the Following Questions Using the Information Below: Healesville Animates

Answer the Following Questions Using the Information Below:
Healesville Animates