During July, Roy Co Under Absorption Costing, Any Unsold Units Would Be Carried in Roy

Multiple Choice

During July, Roy Co. produced 10,000 units. Costs incurred by Roy during the month were as follows: $\begin{array}{lrr} \text { Direct materials } &£ 10,000\\ \text { Direct labour.} &20,000\\ \text { Variable manufacturing overhead. } &6,000\\ \text {Variable selling and administrative. } &3,000\\ \text { Fixed manufacturing overhead. } &9,000\\ \text { Fixed selling and administrative. } &4,000\\ \text {Total.}&£61,000\end{array}$

Under absorption costing, any unsold units would be carried in the stock account at a unit product cost of

A) £5.10.
B) £4.40.
C) £3.80.
D) £3.50.