B & B Manufacturing Produces a Single Product

Multiple Choice

B & B Manufacturing produces a single product. Last year, the company produced 10,000 units out of which 9,500 were sold. There were no units in beginning inventory. The company had the following costs: Refer to the information provided for B & B Manufacturing. What is the unit product cost using absorption costing?

A) $ 8.00
B) $ 6.00
C) $ 7.50
D) $10.50