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Port Jackson Manufacturing Expects to Produce and Sell 12 000

Question 198

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Port Jackson Manufacturing expects to produce and sell 12 000 units of Big,its only product,for $30 each.Direct material cost is $3 per unit,direct labour cost is $10 per unit,and variable manufacturing overhead is $4 per unit.Fixed manufacturing overhead is $36 000 in total.Variable selling and administrative expenses are $1 per unit,and fixed selling and administrative costs are $3000 in total.According to generally accepted accounting principles,inventoriable cost per unit of Big would be:


A) $22.00 per unit.
B) $17.00 per unit.
C) $20.00 per unit.
D) $16.00 per unit.

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