Answer the Following Questions Using the Information Below

question 6

Multiple Choice

Answer the following questions using the information below:
Gloria's Decorating produces and sells a mantel clock for $80 per unit. In 2011, 50,000 clocks were produced and 40,000 were sold. Other information for the year includes:

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

• A)$32
• B)$35
• C)$60
• D)$80

---

Definitions:

Accrued Expenses

Expenses that have been incurred but not yet paid or recorded in the accounting period they relate to.

Insurance Expense

The cost incurred by a company to insure its assets and operations.

Adjusting Entry

Recording entries in journals at an accounting period's end to distribute income and expenses to the actual period of occurrence.

Prepaid Insurance

Refers to payments made in advance for insurance coverage, recognized as an asset on the balance sheet until the coverage period lapses.