J&S; Manufacturing expects to produce and sell 13,000 units of Big, its only pro

Question

J&S; Manufacturing expects to produce and sell 13,000 units of Big, its only product, for $20 each. Direct material cost is $6 per unit, direct labor cost is $15 per unit, and variable manufacturing overhead is S10 per unit. Fixed manufacturing overhead is $26,000 in total. Variable selling and administrative expenses are $2 per unit, and fixed selling and administrative costs are $3,000 in total. According to generally accepted accounting principles, inventoriable cost per unit of Big would be O A. $33.00 per unit O B. $23.00 per unit O C. $31.00 per unit O D. $21.00 per unit

Explanation / Answer

Calculate inventory cost per unit :

so answer is a) $33.00 per unit

Direct materiall 6 Direct labour 15 Variable manufacturing overhead 10 Fixed manufacturing overhead (26000/13000) 2 Unit product cost 33

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