Kaycom,Inc What Is the Amount of Unit Product Cost That Will

question 45

Multiple Choice

Kaycom,Inc.reports the following information: $$\begin{array} { | l | r |r| } \hline \text { Units produced } & 520 &\text { units } \\\hline \text { Units sold } & 520& \text { units } \\\hline \text { Sales price } & \$ 180 &\text { per unit } \\\hline \text { Direct materials } & \$ 40& \text { per unit } \\\hline \text { Direct labor } & \$ 15& \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 20 &\text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 13,000& \text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 10& \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 15,000& \text { per year } \\\hline\end{array}$$ What is the amount of unit product cost that will be considered for external reporting purposes? (Round any intermediate calculations and your final answer to the nearest cent. )

• A)$40.00
• B)$80.00
• C)$125.00
• D)$100.00

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Definitions:

Repairs Expense

Costs incurred in the maintenance of assets to keep them in their original condition, without adding to their value or extending their life.

Maintenance Expense

Costs incurred to keep property, equipment, or assets in efficient operating condition.

Par Value

A nominal value assigned to a security or share, representing its minimum stated value.

Common Stock

A type of equity security that represents ownership in a corporation, with voting rights and potential dividends.