Homebase Inc. reports the following production cost information: Units produced: 97,000 units Units sold: 92,000 units Ending finished goods inventory: 5,000 units Direct labor: $17 per unit Direct materials: $34 per unit Variable overhead: $26 per unit Fixed overhead: $1,940,000 in total A) Compute product cost per unit under variable costing. B) Compute product cost per unit under absorption costing. C) Determine the cost of ending inventory using variable costing. D) Determine the cost of ending inventory using absorption costing.
Homebase Inc. reports the following production cost information: Units produced: 97,000 units Units sold: 92,000 units Ending finished goods inventory: 5,000 units Direct labor: $17 per unit Direct materials: $34 per unit Variable overhead: $26 per unit Fixed overhead: $1,940,000 in total A) Compute product cost per unit under variable costing. B) Compute product cost per unit under absorption costing. C) Determine the cost of ending inventory using variable costing. D) Determine the cost of ending inventory using absorption costing.
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...
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