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.

Principles of Accounting Volume 2
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ISBN:9781947172609
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Chapter5: Process Costing
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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.
Transcribed Image Text: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.
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