Accounting 9706 · AS & A Level · Costs and cost behaviour

Costs and cost behaviour — practice question

The data below refer to a manufacturing business: output during the period = 2400 units ending inventory = 400 units direct material costs = $12000 direct labour costs = $6000 factory fixed expenses = $4080 There was no inventory at the start of the period. The ending inventory has been priced by marginal costing. What is the marginal cost per unit of the finished goods?

  • A$7.50
  • B$9.00
  • C$9.20
  • D$11.04

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