Use the Information Below to Answer the Following Question(s)

question 58

Multiple Choice

Use the information below to answer the following question(s) .Consider the following data of the Vancouver Company for the year 2019:

-What is the unit cost for the direct materials for 2019 assuming direct materials costs are for the production of 1,014,000 units?

• A)$0.80
• B)$0.95
• C)$1.00
• D)$1.08
• E)$1.11

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Definitions:

Absorption Costing

A technique in cost accounting that incorporates all costs of production, including fixed and variable, into the valuation of inventory and cost of goods sold.

Variable Costing

An accounting method that includes only variable production costs as product costs, treating fixed manufacturing overhead as an expense of the period in which it is incurred.

Unit Product Cost

The total cost associated with producing a single unit of a product, including direct materials, direct labor, and allocated overhead.

Absorption Costing

A method of inventory costing that includes all manufacturing costs, both variable and fixed, in the cost of a finished product.