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A Company Has the Following Information for the Current Month

Question 23

Multiple Choice

A company has the following information for the current month of operations:  Raw materials used $37,500 Sales $97.50 per unit)  $117,000 Direct labor $63,000 Variable factory overhead $25,500 Fixed factory overhead  unknown  Variable selling and administrative $4,500 Fixed selling and administrative $7,500 Gross profit $45,000 Contribution margin  unknown  Inventories:  Beginning Ending  Raw materials 0$10,500 WIP 0 none  Finished goods 01,200 units \begin{array}{lr}\text { Raw materials used } & \$ 37,500 \\\text { Sales } \$ 97.50 \text { per unit) } & \$ 117,000 \\\text { Direct labor } & \$ 63,000 \\\text { Variable factory overhead } & \$ 25,500 \\\text { Fixed factory overhead } & \text { unknown } \\\text { Variable selling and administrative } & \$ 4,500 \\\text { Fixed selling and administrative } & \$ 7,500 \\\text { Gross profit } & \$ 45,000 \\\text { Contribution margin } & \text { unknown }\\\\\text { Inventories: }&\text { Beginning}&\text { Ending }\\\text { Raw materials } & 0 & \$ 10,500 \\\text { WIP } & 0 & \text { none } \\\text { Finished goods } & 0 & 1,200\text { units }\end{array} _____ is the inventory cost per unit using variable costing.


A) $97.50
B) $52.50
C) $56.88
D) $54.38

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