A Company Reports the Following Information for Its First Year

question 142

Multiple Choice

A company reports the following information for its first year of operations.
$$\begin{array} { l l } \text { Units produced this year } & ? \text { units } \\\text { Units sold this year } & 1,500 \text { units } \\\text { Direct materials } & \$ 9 \text { per unit } \\\text { Direct labor } & \$ 5 \text { per unit } \\\text { Variable overhead } & \$ 7 \text { per unit } \\\text { Fixed overhead } & \$ 24,000 \text { in total }\end{array}$$
If the company's cost per unit of finished goods using absorption costing is $27, how many units were produced?

• A) 4,000 units.
• B) 3,600 units.
• C) 1,846 units.
• D) 2,667 units.
• E) 2,000 units.

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