Unit Costs, Inventory Valuation, Variable and Absorption Costing Snyder Company produced 90,500 units during its first year of operations and sold 86,650 at $21.16 per unit. The company chose practical activity—at 90,500 units—to compute its predetermined overhead rate. Manufacturing costs are as follows: Direct materials $583,725 Direct labor 90,500 Expected and actual variable overhead 362,905 Expected and actual fixed overhead 439,830
Unit Costs,
Snyder Company produced 90,500 units during its first year of operations and sold 86,650 at $21.16 per unit. The company chose practical activity—at 90,500 units—to compute its predetermined
| Direct materials | $583,725 |
| Direct labor | 90,500 |
| Expected and actual variable overhead | 362,905 |
| Expected and actual fixed overhead | 439,830 |
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 |
3. What is the dollar amount that would be used to report the cost of finished goods inventory to external parties?
$fill in the blank 5
Why?
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