Question

Zephyr Apparels is a clothing retailer. Unit costs associated with one of its​ products, Product​ DCT121, are as​ follows:

Direct materials $ 100
Direct manufacturing labor 70
Variable manufacturing overhead 45
Fixed manufacturing overhead 36
Sales commissions​ (2% of​ sales) 8
Administrative salaries 24
Total $ 283

What are the inventoriable costs per unit associated with Product​ DCT121?
A. $ 251
B. $ 215
C. $ 183
D. $ 238

Answer 1

The inventoriable costs per unit associated with Product DCT121 are $283.

Step-by-step explanation:

To calculate the inventoriable costs per unit associated with Product DCT121, we need to add up all the direct and indirect costs that are necessary for the production of one unit of the product. In this case, the direct materials cost is $100, the direct manufacturing labor cost is $70, the variable manufacturing overhead cost is $45, the fixed manufacturing overhead cost is $36, the sales commissions cost is $8, and the administrative salaries cost is $24. Adding up all these costs, we get $100 + $70 + $45 + $36 + $8 + $24 = $283. Therefore, the inventoriable costs per unit associated with Product DCT121 is $283.