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Variable costs per unit:
Direct materials:$6
Direct labour:$4
Variable overhead: $3
Variable selling:$1
Fixed Cost:
Fixed overhead for 400,000 units produced: $200,000
selling and admin expenses: are $60,000
During the year the company produced 400,000 storage containers and sold 200,000 units at 30$ each. The company had 2000 storage containers in beginning finished goods inventory.
Question 1: What is the per unit inventory cost that is acceptable for reporting on the company balance at the end of the year?
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