Trio Company reports the following information for the current year, which is its first year of operations. Direct materials $12 per unit Direct labor $18 per unit Overhead costs for the year: Variable overhead $67,500 per year Fixed overhead $135,000 per year Units produced this year 22,500 units Units sold this year 16,500 units Ending finished goods inventory in units 6,000 units Required: A. Compute the cost per unit using absorption costing. B. Determine the cost of ending finished goods inventory using absorption costing. C. Determine the cost of goods sold using absorption costing.

Trio Company reports the following information for the current year, which is its first year of operations. Direct materials $12 per unit Direct labor $18 per unit Overhead costs for the year: Variable overhead $67,500 per year Fixed overhead $135,000 per year Units produced this year 22,500 units Units sold this year 16,500 units Ending finished goods inventory in units 6,000 units Required: A. Compute the cost per unit using absorption costing. B. Determine the cost of ending finished goods inventory using absorption costing. C. Determine the cost of goods sold using absorption costing.

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

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 39E: Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
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