Cutterski Corporation manufactures a propeller. Shown below is Cutterski's cost structure:

	Variable cost per propeller	Total fixed cost for the year
Manufacturing cost	$115	$748,800
Selling and administrative expense	$21	$174,800

In its first year of operations, Cutterski produced 60,000 propellers but only sold 54,000.

What would Cutterski report as its cost of goods sold under absorption costing?

$81,000

$108,000

$81,000

$108,000

Answer rating: 100% (QA)

Solution Answer 6883920 Explanation Fixed manufacturing cost per u... View the full answer