Santana Company has no beginning and ending inventories, and reports the following information for its only product:
Direct materials used $250,000
Direct labor $120,000
Fixed indirect manufacturing $60,000
Variable indirect manufacturing $20,000
Variable selling and administrative $50,000
Fixed selling and administrative $10,000
Units produced and sold 40,000
Santana Company uses the absorption approach to prepare the income statement. What is the product cost per unit?
A) $11.00
B) $11.25
C) $12.00
D) $12.75
B
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a. true b. false
Preferred stock is advantageous in that it ______.
a. has priority over creditors at liquidation b. has priority over common stock when dividends are declared c. receives dividends before creditors are to receive any interest payments d. has priority over common stock at liquidation