Shore Company Reports the Following Information Regarding Its Production Cost

question 56

Multiple Choice

Shore Company reports the following information regarding its production cost.
$\begin{array}{ll}\text { Units produced } & 28,000 \text { units } \\\text { Direct labor } & \$ 23 \text { per unit } \\\text { Direct materials } & \$ 24 \text { per unit } \\\text { Variable overhead } & \$ 280,000 \mathrm{in} \text { total } \\\text { Fixed overhead } & \$ 94,920 \mathrm{in} \text { total }\end{array}$

Compute production cost per unit under absorption costing.

• A) $57.00
• B) $60.39
• C) $47.00
• D) $23.00
• E) $24.00

Understand the components and calculation of prime costs.

Differentiate between manufacturing and merchandising cost terminologies.

Identify and calculate conversion costs.

Recognize the flow of costs in manufacturing activities.

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