A 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 87,372 Direct labor Expected and actual variable overhead 300,139 Expected and actual fixed overhead 432,006 Calculate the unit cost and the cost of finished goods inventory under absorption costing and calculate the unit cost and the cost of finished goods inventory under variable costing.

A 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 87,372 Direct labor Expected and actual variable overhead 300,139 Expected and actual fixed overhead 432,006 Calculate the unit cost and the cost of finished goods inventory under absorption costing and calculate the unit cost and the cost of finished goods inventory under variable costing.

Name: A Company produced 80,900 units during its first year of operations a
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Description: A Company produced 80,900 units during its first year of operations and sold 77,100 at21.60 per unit. The company chose practical activity-at 80,900 units to compute itspredetermined overhead rate. Manufacturing costs are as follows:Direct materials

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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