question archive Cutterski Corporation manufactures a propeller
Subject:AccountingPrice:2.87 Bought7
Cutterski Corporation manufactures a propeller. Shown below is Cutterski's cost structure:
Variable cost per propeller | Total fixed cost for the year | |
Manufacturing cost | $115 | $748,800 |
Selling and administrative expense | $21 | $174,800 |
In its first year of operations, Cutterski produced 93,600 propellers but only sold 87,400.
What would Cutterski report as its cost of goods sold under absorption costing?
$10,051,000
$10,750,200
$12,760,400
$11,684,600
Purchased 7 times