Duo Company reports the following information for the current year, which is its first year of operations.
Direct materials | $15 per unit |
Direct labor | $16 per unit |
Overhead costs for the year |
|
Variable overhead | $ 80,000 per year |
Fixed overhead | $160,000 per year |
Units produced this year. | 20,000 units |
Units sold this year. | 14,000 units |
Ending finished goods inventory in unit | 6,000 units |
1.Compute the cost per unit of finished goods using absorption costing.
2.Compute the cost per unit of finished goods using variable costing.
3.Determine the cost of ending finished goods inventory using absorption costing.
4.Determine the cost of ending finished goods inventory using variable costing.
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