Smidt Corporation has provided the following data for its two most recent years of operation:
Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 9 Direct labor $ 5 Variable manufacturing overhead $ 5 Fixed manufacturing overhead per year $ 140,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 5 Fixed selling and administrative expense per year $ 65,000 Year 1 Year 2 Units in beginning inventory 0 3,000 Units produced during the year 10,000 7,000 Units sold during the year 7,000 6,000 Units in ending inventory 3,000 4,000
The unit product cost under absorption costing in Year 1 is closest to:
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Ответ:
Unitary cost= $33
Explanation:
Giving the following information:
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials $9
Direct labor $5
Variable manufacturing overhead $5
Fixed manufacturing overhead per year $ 140,000
Year 1:
Units produced during the year 10,000
Under absorption costing, the unitary product cost is calculated summing the direct material, direct labor, and total manufacturing overhead:
First, we need to calculate the unitary fixed manufacturing overhead:
Unitary fixed overhead= 140,000/10,000= $14 per unit
Unitary cost= direct material + direct labor + unitary overhead
Unitary cost= 9 + 5 + (5 + 14)= $33
Ответ:
I believe your answer is A: Unearned Revenue.
Because, if a business has received cash, in advance of services performed, and credits a liability account, the adjusting entry needed, after the services are performed, will be debit Unearned Revenue and credit Cash.