Elbrege Corporation manufactures a single product The compan

Elbrege Corporation manufactures a single product. The company has supplied the following data: Selling price per unit $ 30 Variable costs per unit: Production $ 7 Selling and administrative $ 4 Fixed costs per year: Production $ 75,000 Selling and administrative $ 50,000 There was no beginning inventory. During the year 25,000 units were produced and 20,000 units were sold. Under absorption costing, the unit product cost would be:

Solution

Calculate unit product cost under absorption costing :