LuLus Lockets manufactures a single product, a diamond locket. Last year, the company produced 4,000 lockets and

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LuLu’s Lockets manufactures a single product, a diamond locket. Last year, the company produced 4,000 lockets and sold 3,500 of them. They had no lockets at the beginning of the year. The company has the following costs:

Variable costs per unit:

Production$ 4.00

Selling and administrative $ 1.00

Fixed costs in total:

Production $12,000

Selling and administrative $ 8,000

Required

Calculate the unit product cost, assuming that the company uses absorption costing.

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Managerial Accounting A Focus on Ethical Decision Making

ISBN: 978-0324663853

5th edition

Authors: Steve Jackson, Roby Sawyers, Greg Jenkins

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Question Posted: Mar 11, 2015 11:04 AM

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LuLus Lockets manufactures a single product, a diamond locket. Last year, the company produced 4,000 lockets and

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Managerial Accounting A Focus on Ethical Decision Making

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