Question: Moskowitz Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 91 Manufacturing costs: Variable manufacturing
Moskowitz Corporation has provided the following data for its two most recent years of operation:
| Selling price per unit | $ | 91 |
| Manufacturing costs: | ||
| Variable manufacturing cost per unit produced: | ||
| Direct materials | $ | 13 |
| Direct labor | $ | 7 |
| Variable manufacturing overhead | $ | 3 |
| Fixed manufacturing overhead per year | $ | 480,000 |
| Selling and administrative expenses: | ||
| Variable selling and administrative expense per unit sold | $ | 6 |
| Fixed selling and administrative expense per year | $ | 84,000 |
| Year 1 | Year 2 | |
| Units in beginning inventory | 0 | 3,000 |
| Units produced during the year | 12,000 | 10,000 |
| Units sold during the year | 9,000 | 10,000 |
| Units in ending inventory | 3,000 | 3,000 |
The unit product cost under variable costing in Year 1 is closest to:
| $23.00 | ||
| $69.00 | ||
| $63.00 | ||
| $29.00 |
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