Walsh Company Produces a Single Product

question 118

Multiple Choice

Walsh Company produces a single product. Last year, the company manufactured 25,000 units and sold 22,000 units. Production costs were as follows: Sales totaled $440,000, variable selling and administrative expenses were $110,000, and fixed selling and administrative expenses were $45,000. There was no beginning inventory. Assume that direct labor is a variable cost.
-Under absorption costing, the unit product cost would be:

• A) $9.00
• B) $12.00
• C) $13.40
• D) $14.00

---

Definitions:

Amphetamines

A class of stimulant drugs that can increase energy and concentration while decreasing appetite and fatigue.

Epinephrine

A hormone and neurotransmitter also known as adrenaline, involved in regulating heart rate, blood vessel and air passage diameters.

Chemically Similar

Substances that share similar chemical structures or properties.

Crystalline Form

The solid state of a substance in which the atoms or molecules are arranged in a highly ordered, repeating pattern.