Time Again LLC produces and sells a mantel clock for $150.00 per unit. In 2017, 43,000 clocks were produced and 36,000 were sold. Other information for the year includes: Direct materials $43.00 per unit Direct manufacturing labor $8.00 per unit Variable manufacturing costs $4.00 per unit Sales commissions $15.00 per part Fixed manufacturing costs $63.00 per unit Administrative expenses, all fixed $38.50 per unit What is the inventoriable cost per unit using absorption costing?

Unitary cost= $118

Explanation:

Giving the following information:

Production= 43,000

Direct materials $43.00 per unit

Direct manufacturing labor $8.00 per unit

Variable manufacturing costs $4.00 per unit

Fixed manufacturing costs $63.00 per unit

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

Unitary cost= 43 + 8 + 4 + 63

Unitary cost= $118

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