Reference no: EM132572538

Question - Peggy's Pillows produces and sells a decorative pillow for $75.00 per unit. In the first month of operation, 2,000 units were produced and 1,750 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Budgeted monthly production is 2,500 units. The production volume variance is written off to the cost of goods sold account. Other information for the month includes:

Variable manufacturing costs $20.00 per unit

Variable marketing costs $ 3.00 per unit

Fixed manufacturing costs per month $ 17,500

Administrative expenses, all fixed $15.00 per unit

Required - What is cost of goods sold using absorption costing?

a. 47,250

b. 48,500

c. 60,750

d. 50,750