Unit Costs, Inventory Valuation, Variable and Absorption CostingSnyder Company produced 99,100 units during its first year of operations and sold 96,850 at $20.79 per unit. The company chose practical activity—at 99,100 units—to compute its predetermined overhead rate. Manufacturing costs are as follows:Direct materials$552,978Direct labor97,118Expected and actual variable overhead359,733Expected and actual fixed overhead523,248Required:If required, round unit cost answers to the nearest cent.1. Calculate the unit cost and the cost of finished goods inventory under absorption costing.Unit Cost$fill in the blank 1Cost of finished goods inventory$fill in the blank 22. Calculate the unit cost and the cost of finished goods inventory under variable costing.Unit Cost$fill in the blank 3Cost of finished goods inventory$fill in the blank 4

The unit cost under absorption is the sum of the per unit variable production cost and per unit…

Answered: Unit Costs, Inventory Valuation,…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...

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Unit Costs, Inventory Valuation, Variable and Absorption Costing

Snyder Company produced 99,100 units during its first year of operations and sold 96,850 at $20.79 per unit. The company chose practical activity—at 99,100 units—to compute its predetermined overhead rate. Manufacturing costs are as follows:

Direct materials	$552,978
Direct labor	97,118
Expected and actual variable overhead	359,733
Expected and actual fixed overhead	523,248

Required:

If required, round unit cost answers to the nearest cent.

1. Calculate the unit cost and the cost of finished goods inventory under absorption costing.

Unit Cost	$fill in the blank 1
Cost of finished goods inventory	$fill in the blank 2

2. Calculate the unit cost and the cost of finished goods inventory under variable costing.

Unit Cost	$fill in the blank 3
Cost of finished goods inventory	$fill in the blank 4

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