Refer to the information in QS 19-16. The company sells its product for $50 per unit. Due
Question:
Refer to the information in QS 19-16. The company sells its product for $50 per unit. Due to new regulations, the company must now incur $2 per unit of hazardous waste disposal costs and $8,500 per year of fixed hazardous waste disposal costs. Compute the company’s break-even point (in units), including hazardous waste disposal costs.
1. Compute the product cost per unit using absorption costing.
2. Determine the cost of ending finished goods inventory using absorption costing.
3. Determine the cost of goods sold using absorption costing.
Data From QS 19-16
Under absorption costing a company had the following per unit costs when 10,000 units were produced.
Step by Step Answer:
Financial And Managerial Accounting Information For Decisions
ISBN: 9781259726705
7th Edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta