Snyder Company produced 90,000 units during its first year of operations and sold 87,000 at $21.80 per unit. The company chose practical activity - at 90,000 units - to compute its predetermined overhead rate. Manufacturing costs are as follows: Direct materials $540,000 Direct labor 99,000 Expected and actual variable overhead 369,000 Expected and actual fixed overhead 468,000 Required: Calculate the 1) unit cost and 2) cost of finished goods inventory under absorption costing. Calculate the 1) unit cost and 2) cost of finished goods inventory under variable costing. What is the amount to be used to report the cost of finished goods inventory to external parties. Why?
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Unit Costs, Inventory Valuation, Variable and Absorption Costing Snyder Company produced 80,900 units during its first year of operations and sold 77,100 at $21.60 per unit. The company chose practical activity—at 80,900 units—to compute its predetermined overhead rate. Manufacturing costs are as follows: Direct materials $457,085 Direct labor 87,372 Expected and actual variable overhead 300,139 Expected and actual fixed overhead 432,006 Required: If required, round unit cost answers to the nearest cent. 1. Calculate the unit cost and the cost...
Play Now has a budgeted (expected) output of 100,000 sliding boards and an actual output of 90,000 sliding boards. The following data from last year is available:Selling price = $100 per unitStandard direct labor hours per unit = 1 hour per unitActual direct labor cost per unit = 1.1 hours per unit x $11 per hourBudgeted total direct labor cost = $1,000,000Budgeted fixed manufacturing overhead = $1,900,000Actual fixed manufacturing overhead = $2,178,000Budgeted variable manufacturing overhead = $1,000,000Actual variable manufacturing overhead = $940,500Budgeted...
Amiens Company produced 20,000 units during its first year of operations and sold 18,900 at $17 per unit. The company chose practical activity-at 20,000 units-to compute its predetermined overhead rate. Manufacturing costs are as follows: Direct materials $ 80,000 Direct labor 101,400 Variable overhead 15,600 Fixed overhead 54,600 Required: 1. Calculate the unit cost for each of these four costs. Round your answers to the nearest cent. Direct Materials Cost $ Direct Labor Cost $ Variable Overhead Cost $ Fixed...
Trio Company reports the following information for the current year, which is its first year of operations. Direct materials $ 13 per unit Direct labor $ 19 per unit Overhead costs for the year Variable overhead $ 45,000 per year Fixed overhead $ 90,000 per year Units produced this year 22,500 units Units sold this year 16,500 units Ending finished goods inventory in units 6,000 units Compute the product cost per unit using absorption costing. Cost per unit of finished...
Dodner Company uses an absorption costing system in accounting for the single product it manufactures. The following selected data are for the year 2020: Sales (20,000 $720,000 units) Direct materials $259,200 used Direct labor $86,400 costs Variable manufacturing $25,920 overhead Fixed manufacturing $34,560 overhead $43,200 Variable selling and administrative expenses Fixed selling and administrative expenses $144,000 The company produced 24,000 units and sold 20,000 units in 2020. Direct materials and direct labor are variable costs. One unit of direct material...
Exercise 06-2 Computing unit and inventory costs under variable costing LO P1 Trio Company reports the following information for the current year, which is its first year of operations. Assume instead that Trio Company uses variable costing $ 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 20,800 units...
Question 1 Ryan Pty Ltd produces and sells a single product and uses predetermined overhead rates based on normal capacity to apply overhead. At 1 July 2014 it had a finished goods inventory of 20,000 units. Management would like a comparison with direct costing so as to be able to evaluate its variable costs more easily. Beginning inventory had the same unit cost as inventory produced during the year. The company annual record shows: Normal Capacity Production (actual) Units 96,000...
1. Compute the value of Outback Corporation’s 20x1 ending finished-goods inventory under absorption costing. (Do not round intermediate calculations.) 2. Compute the value of Outback Corporation’s 20x1 ending finished-goods inventory under variable costing. (Do not round intermediate calculations.) 3. Compute the difference between Outback Corporation’s 20x1 reported operating income calculated under absorption costing and calculated under variable costing. (Do not round intermediate calculations.) Outback Corporation manufactures tactical LED flashlights in Brisbane, Australia. The firm uses an absorption costing system for...
Exercise 17.25 Skysong Co. made 4,000 units of a product during its first year of operations and sold 3,000 units for $586,100. There was no ending work-in-process inventory. Total costs were $576,000, consisting of the following: Direct materials and direct labour Manufacturing overhead (45% fixed) Selling and administrative $250,000 170,000 156,000 Calculate the cost of the 1,000 units of finished goods ending inventory under actual variable costing. (Round variable manufacturing cost per unit to 3 decimal places, e.g. 15.125 and...
Exercise 17.25 Flint Co. made 4,000 units of a product during its first year of operations and sold 3,000 units for $583,200. There was no ending work-in-process inventory. Total costs were $573,000, consisting of the following: Direct materials and direct labour Manufacturing overhead (45% fixed) Selling and administrative $230,000 200,000 143,000 Calculate the cost of the 1,000 units of finished goods ending inventory under actual variable costing. (Round variable manufacturing cost per unit to 3 decimal places, e.g. 15.125 and...