Use the following data to answer the question Using absorption costing, how much

Question

Use the following data to answer the question

Using absorption costing, how much inventoriable cost is assigned to each unit produced in February?

Use the following data to answer the question

January February March Unit Data       Beginning Inventory 0       ?       ?       Production 1100 1000 1000       Sales 700 800 1000 variable costs       manufacturing cost per unit produced $900 $900 $900       marketing cost per unit sold produced $600 $600 $600 Fixed costs    Manufacturing costs $450,000 $450,000 $450,000    Marketing costs $140,000 $140,000 $140,000

Using absorption costing, how much inventoriable cost is assigned to each unit produced in February?

Correct Answer: 1,350.00
How did they get the answer? Use the following data to answer the question Using absorption costing, how much inventoriable cost is assigned to each unit produced in February?

Explanation / Answer

Hi,

Please find the answer as follows:

Inventoriable Cost = 900 (Variable Manufacturing Cost) + 450000/1000 (Per Units Fixed Cost) = 1350

Thanks.

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