Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jean Peck's Furniture manufactures tables for hospitality sector. It takes only bulk orders and each table is sold for $400 after negotiations. In the month

image text in transcribed

Jean Peck's Furniture manufactures tables for hospitality sector. It takes only bulk orders and each table is sold for $400 after negotiations. In the month of January, it manufactures 3,000 tables and sells 2,500 tables. Actual fixed costs are the same as the amount of fixed costs budgeted for the month. Budgeted production is equal to actual production, and there is no production-volume variance. The following information is provided for the month of January: Variable manufacturing costs $150 per unit Fixed manufacturing costs $95,000 per month Fixed Administrative expenses $28,000 per month At the end of the month Jean Peck's Furniture has an ending inventory of finished goods of 500 units. The company also incurs a sales commission of $10 per unit. What is the cost of goods sold per unit when using absorption costing? A. $191.67 B. $118.33 C. $181.67 D. $150.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Business Reporting For Decision Making

Authors: Jacqueline Birt, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver

6th Edition

978-0730363415, 0730363414

More Books

Students also viewed these Accounting questions