Answer the Following Questions Using the Information Below

question 32

Multiple Choice

Answer the following questions using the information below:
Kory's Auto produces and sells an auto part for $60.00 per unit. In 2011, 100,000 parts were produced and 75,000 units were sold. Other information for the year includes:

-What is the inventoriable cost per unit using absorption costing?

• A)$30.00
• B)$36.00
• C)$37.50
• D)$43.50

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Definitions:

Accumulated Depreciation

The sum of all depreciation expenses allocated for a physical asset from the time it was first utilized.

Depreciation Expense

The systematic write-off of the cost of a tangible asset over its useful life.

Intangibles

Assets that lack physical substance but are nonetheless valuable to a company, such as patents, trademarks, goodwill, and copyrights.

Constructing

The process of building or assembling infrastructure, buildings, or other substantial physical structures.