Answer the Following Questions Using the Information Below:
Coroid Manufacturers

question 184

Multiple Choice

Answer the following questions using the information below:
Coroid Manufacturers Inc. is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers:
$\begin{array}{l}\text { Variable costs: }\\\text { Direct materials } & \$ 120 \\\text { Direct labor } & 60 \\\text { Manufacturing support } & 105 \\\text { Marketing costs } & 45\\\text { Fixed costs: }\\\text { Manufacturing support } & 135 \\\text { Marketing costs } & \underline{45}\\\text { Total costs } & 510 \\\text { Markup (50\%) } & 255 \\\text { Targeted selling price } & \$ 765\end{array}$
-What is the full cost of the product per unit?

• A) $330
• B) $765
• C) $510
• D) $255

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Definitions:

Unearned Fees

Income received by a business for services yet to be performed or delivered, recorded as a liability on the balance sheet until the services are completed.

Earned Fees

Revenue generated from providing services or performing work.

Adjusting Entry

A journal entry made in accounting records to update the balances of accounts at the end of an accounting period.

Accrued Salaries

Salaries that have been earned by employees but have not yet been paid by the employer.