Question

eggy's Pillows produces and sells a decorative pillow for $75.00 per unit. In the first month of operation, 2,000 units were produced and 1,750 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes: Variable manufacturing costs $20.00 per unit Variable marketing costs $ 3.00 per unit Fixed manufacturing costs $ 7.00 per unit Administrative expenses, all fixed $15.00 per unit Ending inventories: Direct materials -0- WIP -0- Finished goods 250 units What is cost of goods sold per unit using variable costing?

Answer 1

Total cost of goods sold per unit is $35,000

Step-by-step explanation:

Given Data:

cost for decorative pillow =$75.00 per unit

Total sold unit = 1750

Per unit manufacturing cost

we know that Variable Costing includes only manufacturing cost

Therefore, the total cost of goods as per variable costing can be computed as follow

`$20 *  1750 = $35,000`

The total cost of goods sold per unit is $35,000