Crystal Pools,Inc What Is the Unit Product Cost Using Absorption Costing?
A)$75

question 70

Multiple Choice

Crystal Pools,Inc.has provided the following information for the year. $$\begin{array} { | l | r | r|} \hline \text { Units produced } & 6,000& \text { units } \\\hline \text { Sales price } & \$ 600& \text { per unit } \\\hline \text { Direct materials } & \$ 35 &\text { per unit } \\\hline \text { Direct labor } & \$ 40 &\text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 25& \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 470,000& \text { per year } \\\hline \text { Variable selling and administration costs } & \$ 60& \text { per unit } \\\hline \text { Fixed selling and administration costs } & \$ 250,000 &\text { per year } \\\hline\end{array}$$ What is the unit product cost using absorption costing?

• A)$75
• B)$178
• C)$135
• D)$100

Recognize the concept of fair value and its application in financial reporting.

Understand the criteria for classifying a company as a parent or subsidiary and the implications for financial statements.

Comprehend the cost method and equity method of accounting for investments.

Analyze the implications of dividend distributions on the carrying value of investments.

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Definitions:

Tariff

A tax imposed by a nation on an imported good.

Excise Tax

An excise tax is a tax levied on the sale of specific goods or services, such as tobacco, alcohol, and fuel, often intended to discourage their use or generate revenue.

Imported Good

A product or service brought into one country from another for the purpose of selling it.

Government Payment

Financial transfers from the government to individuals, organizations, or other governmental units.