Erie Corporation manufactures a single product, which it sells for $35 per unit. The company has the
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Question:
Erie Corporation manufactures a single product, which it sells for $35 per unit. The company has the following cost structure:
Variable costs per unit: | |||
Producing | $ | 8 | |
Sales and administrative | $ | 5 | |
Annual fixed costs: | |||
Producing | $ | 82.500 | |
Sales and administrative | $ | 60.000 | |
At the beginning of the year, there were no units in inventory. During the year, 30,000 units were produced and 25,000 units were sold.
Under absorption costing, what would be the unit product cost ?
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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