Reference: 08-15
Jimbob Co There Were No Beginning Inventories

question 53

Multiple Choice

Reference: 08-15
Jimbob Co.'s records include the following information for the month of January: $$\begin{array} { | l | l | l | } \hline \text { Units manufactured } & & 5,000 \\\hline \text { Units sold } && 4,000 \\\hline \text { Selling price per unit } & &\$ 50 \\\hline \text { Variable manufacturing costs per unit: } & \\\hline \text { Direct materials } & & \$ 5 \\\hline \text { Direct labour } && \$ 2 \\\hline \text { Manufacturing overhead } & &\$ 1 \\\hline \begin{array} { l } \text { Variable selling and administrative expenses per } \\\text { unit sold }\end{array} && \$ 1 \\\hline \text { Total fixed costs: } & & \\\hline \text { Manufacturing overhead } && \$ 10,000 \\\hline \text { Selling and administrative expenses } && \$ 20,000 \\\hline\end{array}$$ There were no beginning inventories.
-Using absorption costing, what is the cost per unit manufactured in January

• A)$11.00.
• B)$10.00.
• C)$9.00.
• D)$12.00.

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Definitions:

Nitrogenous Base

A molecule found in DNA and RNA that encodes the genetic information in cells.

DNA

A molecule comprising nucleotide chains that encode genetic information vital for the development, functioning, and reproduction of all living organisms and many viruses.

RNA

Ribonucleic acid, a nucleic acid present in all living cells. Its principal role is to act as a messenger carrying instructions from DNA for controlling the synthesis of proteins.

Uracil

One of the four nucleobase components of RNA, it pairs with adenine during RNA transcription and replaces thymine found in DNA.