“During 19×2, Krepps Company manufactured 20,000 units and sold 15,000 units. Production costs for the year were as follows: Fixed Overhead $240,000 Variable Overhead $200,000 Direct Labor $110,000 Direct Materials $170,000 Sales totaled $825,000 for the year, variable selling expenses totaled $108,000, and fixed selling and administrative expenses totaled $165,000. There were no units in the beginning inventory. 84. Under absorption costing, the inventoriable cost of one unit of product would be a. $49.65. b. $43.20. c. $36.00. d. $31.20”,”3Under absorption costing, the inventoriable cost of one unit of product:Total absorption costs = Fixed Overhead + Variable Overhead + Direct Labor +Direct Materials Total absorption costs = 240,000 + 200,000 + 110,000 + 70,000 = $ 720,000Units produced = 20,000 unitsPer unit absorption (inventories) costs = 720,000 = $36 / unit 20
000″