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 inventory3,0003,000The unit product cost under absorption costing in Year 2 is closest to:
A. $77.00
B. $48.00
C. $71.00
D. $23.00
Answer: C
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