32.

Walsh Corporation has provided the following data for its two most recent years of operation:

Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials	$	10
Direct labor	$	6
Variable manufacturing overhead	$	5
Fixed manufacturing overhead per year	$	520,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold	$	6
Fixed selling and administrative expense per year	$	63,000

	Year 1	Year 2
Units in beginning inventory	0	1,000
Units produced during the year	10,000	13,000
Units sold during the year	9,000	11,000
Units in ending inventory	1,000	3,000

The unit product cost under absorption costing in Year 2 is closest to:

Select one:

a.

$61.00

b.

$67.00

c.

$40.00

d.

$21.00