Moskowitz Corporation has provided the following data for its two most recent years of operation:    Selling price per unit$91   Manufacturing costs:  Variable manufacturing cost per unit produced:  Direct materials$13Direct labor$7Variable manufacturing overhead$3Fixed manufacturing overhead per year$480,000Selling and administrative expenses:  Variable selling and administrative expense per unit sold$6Fixed selling and administrative expense per year$84,000  Year 1Year 2Units in beginning inventory03,000Units produced during the year12,00010,000Units sold during the year9,00010,000Units in ending inventory3,0003,000 The unit product cost under absorption costing in Year 2 is closest to:

A. $48.00
B. $71.00
C. $23.00
D. $77.00


Answer: B

Business

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