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Kaycom, Inc. reports the following information:

Units produced 510 units
Units sold 510 units
Sales price $160 per unit
Direct materials $30 per unit
Direct labor $35 per unit
Variable manufacturing overhead $20 per unit
Fixed manufacturing overhead $17,000 per year
Variable selling and administrative costs $10 per unit
Fixed selling and administrative costs $15,000 per year


What is the amount of unit product cost that will be considered for external reporting purposes? (Round any intermediate calculations and your final answer to the nearest cent.)

A.$118.33

B.$68.33

C.$98.33

D.$95.00

Respuesta :

Answer:

A.$118.33

Explanation:

The computation of unit product cost is shown below:

= Direct materials per unit + Direct labor per unit + Variable manufacturing overhead per unit + Fixed manufacturing overhead per unit

where,

Fixed manufacturing overhead per unit = $17,000 ÷ 510 units = $33.33

All the other items would remain the same

Now put these values to the above formula  

So, the per unit would equal to

= $30 + $35 + $20 + $33.33

= $118.33

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