Question: Johnson manufactures a single product and sells it at $30 per unit. Variable cost: Production $8 Selling and administrative $5 Fixed costs: Production $80,000 Selling and administrative $60,000 20,000 units were produced and 17,000 sold. Absorption cost would be: A. $20 per unit B. 12 per unit C. 13 per unit D. 8 per unit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question:
Johnson manufactures a single product and sells it at $30 per unit.
Variable cost:
Production
$8
Selling and administrative $5
Fixed costs:
Production
$80,000
Selling and administrative $60,000
20,000 units were produced and 17,000 sold.
Absorption cost would be:
A. $20 per unit
B. 12 per unit
C. 13 per unit
D. 8 per unit
Transcribed Image Text:Question: Johnson manufactures a single product and sells it at $30 per unit. Variable cost: Production $8 Selling and administrative $5 Fixed costs: Production $80,000 Selling and administrative $60,000 20,000 units were produced and 17,000 sold. Absorption cost would be: A. $20 per unit B. 12 per unit C. 13 per unit D. 8 per unit
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