Question:
Rebel Company manufactures a single product and has the following cost structure:
|
Variable costs per unit:
|
|
|
Production
|
$5
|
|
Selling and administrative
|
$3
|
|
Fixed costs in total:
|
|
|
Production
|
$32,000
|
|
Selling and administrative
|
$16,000
|
Last year there were no beginning inventories, 8,000 units were produced, and 7,800 units were sold.
Under absorption costing, the cost of goods sold would be:
A) $62,400
B) $70,200
C) $71,000
D) $39,000