What is the inventoriable cost per unit using absorption costing?

ACCOUNTING

Multiple Choice

Marie’s Decorating produces and sells a mantel clock for $100 per unit. In 20x1, 100,000 parts were produced and 80,000 units were sold. Other information for the year includes:



Direct materials $30.00 per unit

Direct manufacturing labor $ 2.00 per unit

Variable manufacturing costs $ 3.00 per unit

Sales commissions $ 5.00 per part

Fixed manufacturing costs $25.00 per unit

Administrative expenses, all fixed $15.00 per unit



What is the inventoriable cost per unit using absorption costing?

a. $32

b. $35

c. $60

d. $80

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