Homework Answers
Solution:
The formula for calculating the cost of goods sold as per the absorption costing is
= Variable manufacturing cost per unit + Fixed manufacturing cost per unit
As per the information given in the question we have
Variable manufacturing cost per unit = $ 80 ;
Fixed manufacturing cost per month = $ 60,000 ; No. of units produced per month = 3,000
Thus Fixed manufacturing cost per unit = Fixed manufacturing cost per month / No. of units produced per month
= $ 60,000 / 3,000
= $ 20
Thus we have the cost of goods sold as per the absorption costing as = $ 80 + $ 20
= $ 100
The cost of goods sold as per the absorption costing = $ 100
The solution is Option A. $ 100
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