Unit Costs, Inventory Valuation, Variable and Absorption CostingSnyder Company produced 89,800 units during its first year of operations and sold 86,900 at $22.26 per unit. The company chose practical activity—at 89,800 units—to compute its predetermined overhead rate. Manufacturing costs are as follows:Direct materials$522,636Direct labor102,372Expected and actual variable overhead379,854Expected and actual fixed overhead491,206Required:If required, round unit cost answers to the nearest cent.1. Calculate the unit cost and the cost of finished goods inventory under absorption costing.Unit Cost$fill in the blank 1Cost of finished goods inventory$fill in the blank 22. Calculate the unit cost and the cost of finished goods inventory under variable costingUnit Cost$fill in the blank 3Cost of finished goods inventory$fill in the blank 4

Absorption Costing Method :— In this method, product cost is the sum of direct material, direct…

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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 89,800 units during its first year of operations and sold 86,900 at $22.26 per unit. The company chose practical activity—at 89,800 units—to compute its predetermined overhead rate. Manufacturing costs are as follows:

Direct materials	$522,636
Direct labor	102,372
Expected and actual variable overhead	379,854
Expected and actual fixed overhead	491,206

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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