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

question 183

Multiple Choice

Comet Canisters,Inc.has collected the following data for the current year: $$\begin{array} { | l | r | c | } \hline \text { Beginning Finished Goods Inventory } & 60 & \text { units } \\\hline \text { Units produced } & 560 & \text { units } \\\hline \text { Units sold } & 620 & \text { units } \\\hline \text { Sales price } & \$ 170 & \text { per unit } \\\hline \text { Direct materials } & \$ 40 & \text { per unit } \\\hline \text { Varect labor } & \$ 13 & \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 14 & \text { per unit } \\\hline \text { Variable selling and administrative costs } & \$ 19,500 & \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 6 & \text { per unit } \\\hline\end{array}$$ What is the unit product cost using absorption costing? (Round your answer to the nearest cent.)

• A) $130.14
• B) $67.00
• C) $101.82
• D) $61.82

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Definitions:

Compound Leverage Ratio

A measure that assesses the impact of financial leverage on a company's potential returns, taking into account both debt and equity levels.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period of time, revealing profit or loss.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, showing the company's financial position.

Market-To-Book Ratio

A financial valuation metric used to compare a company's current market value to its book value.