Johnston Company manufactures a single product. The company has supplied the following
data:
|
Selling price |
$30 |
|
Variable costs per unit: |
|
|
Production |
$8 |
|
Selling and administrative |
$5 |
|
Fixed costs: |
|
|
Production |
$80,000 |
|
Selling and administrative |
$60,000 |
Last year there was no beginning inventory. During the year, 20,000 units were produced and 17,000 units were sold.
Under absorption costing, the unit product cost would be:
A) $20
B) $12
C) $13
D) $8