Question

Ch 06 Ex 6-1 i Saved Help Save & Exit Submit Check my work Trio Company reports the following Information for the current year, which is its first year of operations. $ $ 15 per unit 16 per unit points 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 3 per unit $ 135,000 per year 22,500 units 16,500 units 6,000 units eBook Hint 1. Compute the product cost per unit using absorption costing. Cost per unit of finished goods using: Absorption costing Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead per unit Print References Cost per unit of finished goods 2. Determine the cost of ending finished goods inventory using absorption costing- Cost per unit of finished goods using Absorption costing Number of units in finished goods Total cost of finished goods inventory 3. Determine the cost of goods sold using absorption costing. Cost per unit of goods sold using: Absorption costing Number of units in sold goods Total cost of sold goods

Answer 1

Requirement 1 : Cost Per unit of Finished Goods using Absorption costing Direct Material per unit Direct labour per unit Variable manfacturing Overhead per unit Fixed manfacturing Overhead ($135000/22500 units) Cost Per unit of Finished Goods 15.00 16.00 3.00 6 40 Requirement 2 : Cost of Ending Finished goods inventory Number of units in Finished goods Total Cost of finished goods inventory (6000*40) 6000 240,000 Requirement 3 : Cost of Goods sold Number of units in sold goods Total Cost of finished goods inventory (16500*40) $ 16500 660,000