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Billy Bing Ping Pong Corporation manufactures a single product, premium pink ping pong balls. Each premium pink ping pong ball sells for $500.00 each. Selected operating information from last month is as follows:
Variable costs per unit:Direct materials $17.50Direct labor $5.33Manufacturing overhead $2.50Selling & administrative $125.00Total variable costs per unit $150.33
Monthly Fixed costs:Manufacturing overhead $27,500Selling & administrative $173,500Total fixed costs $201,000
Units in beginning inventory 0Units produced 7,350Units sold 7,243Units in ending inventory 107
Under absorption costing, what is the unit product cost for one premium pink ping pong ball?
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