Groovelex,Inc What Is the Unit Product Cost Using Absorption Costing? (Round

question 206

Multiple Choice

Groovelex,Inc.has collected the following data for the current year: $$\begin{array} { | l | r | } \hline \text { Beginning Finished Goods Inventory } & 70 \text { units } \\\hline \text { Units produced } & 560 \text { units } \\\hline \text { Units sold } & 630 \text { units } \\\hline \text { Sales price } & \$ 180 \text { per unit } \\\hline \text { Direct materials } & \$ 23 \text { per unit } \\\hline \text { Direct labor } & \$ 13 \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 16 \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 11,600 \text { per unit } \\\hline \text { Variable selling and administrative costs } & \$ 4 \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 12,000 \text { per unit } \\\hline\end{array}$$ What is the unit product cost using absorption costing? (Round your answer to the nearest cent.)

• A) $98.14
• B) $52.00
• C) $72.71
• D) $49.71

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Definitions:

Ethyl

A two-carbon alkyl functional group derived from ethane, commonly found in many organic compounds.

Primary Alkane

Alkanes where the carbon atoms are connected in a straight chain without any branches.

Gasoline

A volatile, flammable liquid made from crude oil or petroleum, used primarily as fuel in internal combustion engines.

Branched Alkane

Hydrocarbons featuring a tree-like structure, where carbon chains deviate from a straight chain due to side chains.