Smidt Corporation has provided the following data for its two most recent years of operation: Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 9 Direct labor $ 5 Variable manufacturing overhead $ 5 Fixed manufacturing overhead per year $ 140,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 5 Fixed selling and administrative expense per year $ 65,000 Year 1 Year 2 Units in beginning inventory 0 3,000 Units produced during the year 10,000 7,000 Units sold during the year 7,000 6,000 Units in ending inventory 3,000 4,000 The unit product cost under variable costing in Year 1 is closest to: $33.00 $24.00 $19.00 $38.00
Smidt Corporation has provided the following data for its two most recent years of operation: Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 9 Direct labor $ 5 Variable manufacturing overhead $ 5 Fixed manufacturing overhead per year $ 140,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 5 Fixed selling and administrative expense per year $ 65,000 Year 1 Year 2 Units in beginning inventory 0 3,000 Units produced during the year 10,000 7,000 Units sold during the year 7,000 6,000 Units in ending inventory 3,000 4,000 The unit product cost under variable costing in Year 1 is closest to: $33.00 $24.00 $19.00 $38.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Smidt Corporation has provided the following data for its two most recent years of operation:
The unit product cost under variable costing in Year 1 is closest to:
| Variable manufacturing cost per unit produced: | ||
| Direct materials | $ | 9 |
| Direct labor | $ | 5 |
| Variable manufacturing |
$ | 5 |
| Fixed manufacturing overhead per year | $ | 140,000 |
| Selling and administrative expenses: | ||
| Variable selling and administrative expense per unit sold | $ | 5 |
| Fixed selling and administrative expense per year | $ | 65,000 |
| Year 1 | Year 2 | |
| Units in beginning inventory | 0 | 3,000 |
| Units produced during the year | 10,000 | 7,000 |
| Units sold during the year | 7,000 | 6,000 |
| Units in ending inventory | 3,000 | 4,000 |
The unit product cost under variable costing in Year 1 is closest to:
|
$33.00
|
||
|
$24.00
|
||
|
$19.00
|
||
|
$38.00
|
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