Dorothy Products Sells Its Products for $20 Per Unit Using Variable Costing, Calculate the Product Cost Per Unit Produced

question 99

Multiple Choice

Dorothy Products sells its products for $20 per unit. Additional data for the month of April, 2014, are as follows: $$\begin{array} { | l | r | } \hline \text { Beginning inventory } & 0 \text { units } \\\hline \text { Units produced } & 8,000 \\\hline \text { Units sold } & 7,500 \\\hline \text { Ending inventory } & 500 \\\hline \text { Direct materials } & \$ 4 \text { per unit } \\\hline \text { Direct labor } & \$ 8 \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 20,000 \\\hline \text { Fixed manufacturing overhead } & \$ 14,000 \\\hline \text { Operating expenses } & \$ 21,000 \\\hline\end{array}$$ Using variable costing, calculate the product cost per unit produced.

• A) $12.00 per unit
• B) $16.25 per unit
• C) $14.50 per unit
• D) $13.75 per unit

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Definitions:

Myoglobinuria

The presence of myoglobin in the urine; can be caused by injured or damaged muscle tissue.

Phenylalanine

An essential amino acid that cannot be produced by the body and must be obtained from the diet, used in the biosynthesis of proteins.

Phenylketonuria

A genetic disorder characterized by the body's inability to break down the amino acid phenylalanine, requiring dietary restrictions from early life.

Genetic Disorder

A disease or condition caused by abnormalities in an individual's genome; can be inherited or result from a new mutation.