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Assume Clean Motors Ltd Manufactures Only One Component for the Motor

Question 38

Multiple Choice

Assume Clean Motors Ltd manufactures only one component for the motor vehicle industry.In one year the company produced 25 000 units of the component of which 22 000 units were sold.The following costs were recorded for that year:
 Direct material $750000 Direct labour 450000 Manufacturing overhead 300000 Administrative expenses 84000 \begin{array}{lr}\text { Direct material } & \$ 750000 \\ \text { Direct labour } & 450000 \\ \text { Manufacturing overhead } & 300000 \\ \text { Administrative expenses } & 84000\end{array}
Calculate the inventoriable product cost per unit of output for Clean Motors Ltd.


A) $68.18
B) $48.00
C) $63.36
D) $60.00

Correct Answer:

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