IKS is a small company making and selling a single product. After its very first...
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Accounting
IKS is a small company making and selling a single product. After its very first year of operation, it does the range of costs it incurred in manufacturing 3,500 units. Of this number, 3,000 units were sold. Their unit selling price is $10. Here are the details of the costs incurred: Unit variable costs: Raw materials: $2.50 Direct labor: $1.30 Manufacturing overhead: $0.80 Selling and Admin Fee: $2.25
Total fixed costs: Manufacturing overhead: $35,000 Selling and administrative expenses: $95,000
What is the unit cost of the product under the full cost method?
Question 25 options:
a- No answer fits
b- $16.85
c- $14.6
d- $16.27
e- $4.6
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