Hatfield Corporation, Which Has Only One Product, Has Provided the Following

question 179

Multiple Choice

Hatfield Corporation, which has only one product, has provided the following data concerning its most recent month of operations: What is the unit product cost for the month under variable costing?

• A)$98 per unit
• B)$84 per unit
• C)$76 per unit
• D)$106 per unit

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Definitions:

Debit

An accounting entry that increases an asset or expense account, or decreases a liability or equity account. It is positioned on the left in an accounting entry.

Credit

An accounting entry that increases a liability or equity account or decreases an asset or expense account, reflecting the opposite of a debit.

Basic Accounting Equation

Assets = Liabilities + Stockholders’ Equity.

Assets

Resources owned by a business or individual that have economic value and can be converted into cash.