Question

Exercise 06-1 Computing unit and inventory costs under absorption costing LO P1 Trio Company reports the following information for the current year, which is its first year of operations. 15 per unit 16 per unit Direct materials Direct labor Overhead costs for the year Variable overhead Fixed overhead Units produced this year Units sold this year Ending finished goods inventory in units 4 per unit $ 160,000 per year 20,000 units 14,000 units 6,000 units 1. Compute the product cost per unit using absorption costing. Cost per unit of finished goods using: Absorption costing 0 Cost per unit of finished goods $ 2. Determine the cost of ending finished goods inventory using

Answer 1

COST Per unit of Finished good, absorption Casting $ 15 $ 16 Direct Direct variale Flaed material per writ labor Per unit overhead per unit over head per unid (160000/20000) $ 4. $43 ② cost of coding finished good, Inventory using absorption costing Number of unit on Finished good 6000 Total cost of finished goods (6000x 43) inventory $ 258000 I costing 14 000 cost of 90ody sold using absorption Number of units in sold units Total cost of goods sold (4000 X63) $ 602000