Mariah Is Compiling Annual Financial Statements for Her Business

Essay

Mariah is compiling annual financial statements for her business. She uses absorption costing, as per GAAP. Budgeted variable manufacturing costs are $10 per unit and variable operating costs are $2 per unit. Budgeted fixed MOH is $50,000, and budgeted operating costs are $20,000. If she plans to produce 10,000 units, how much cost should be capitalized to inventory for each unit produced?