A manufacturing company that produces a single product has provided the followin

Question

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

What is the total period cost for the month under absorption costing?

Multiple Choice

$61,200

$34,000

$194,200

$133,000

Selling price $ 133 Units in beginning inventory 0 Units produced 7,000 Units sold 6,800 Units in ending inventory 200 Variable costs per unit: Direct materials $ 41 Direct labor $ 57 Variable manufacturing overhead $ 5 Variable selling and administrative expense $ 4 Fixed costs: Fixed manufacturing overhead $ 133,000 Fixed selling and administrative expense $ 34,000

Explanation / Answer

total period cost for the month under absorption costing=Variable selling and administrative expense+Fixed selling and administrative expense

=(4*6800)+34000

which is equal to

=$61200.

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