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5. Blue Company has no beginning and ending inventories, and reports the following information for its only product: Direct materials used $450,000 Direct labor $125,000

5. Blue Company has no beginning and ending inventories, and reports the following information for its only product:

Direct materials used $450,000 Direct labor $125,000 Fixed indirect manufacturing $80,000 Variable indirect manufacturing $70,000 Variable selling and administrative $60,000 Fixed selling and administrative $25,000

Units produced and sold 75,000

Blue Company uses the absorption approach to prepare the income statement. What is the product cost per unit? A) $9.00 B) $11.25 C) $12.00 D) $12.75

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