Unit Costs, Inventory Valuation, Variable and Absorption CostingSnyder Company produced 99,100 units during its first year of operations and sold 96,850 at $20.79 per unit. The company chose practical activity—at 99,100 units—to compute its predetermined overhead rate. Manufacturing costs are as follows:Direct materials$552,978Direct labor97,118Expected and actual variable overhead359,733Expected and actual fixed overhead523,248Required:If required, round unit cost answers to the nearest cent.1. Calculate the unit cost and the cost of finished goods inventory under absorption costing.Unit Cost$fill in the blank 1Cost of finished goods inventory$fill in the blank 22. Calculate the unit cost and the cost of finished goods inventory under variable costing.Unit Cost$fill in the blank 3Cost of finished goods inventory$fill in the blank 4

The unit cost under absorption is the sum of the per unit variable production cost and per unit fixed production cost. Variable costing computes the sum of variable production costs as inventoriable cost and per unit cost.1. Calculate the unit cost and the cost of finished goods inventory under absorption costing as follows: - ParticularAmountPer Unit Direct Material ($552,978/99,100)$5.58Per Unit Direct Labor ($97,118/99,100)$0.98Per Unit Variable OH ($359,733/99,100)$3.63Per Unit Fixed OH ($523,248/99,100)$5.28Per Unit Cost$15.47Cost of Ending Inventory {(99,100 - 96,850) x $15.47}$34,807.502. Calculate the unit cost and the cost of finished goods inventory under variable costing as follows: - ParticularAmountPer Unit Direct Material ($552,978/99,100)$5.58Per Unit Direct Labor ($97,118/99,100)$0.98Per Unit Variable OH ($359,733/99,100)$3.63Per Unit Cost$10.19Cost of Ending Inventory {(99,100 - 96,850) x $10.19}$22,927.501. Per Unit Cost $15.47Cost of Ending Inventory$34,807.502. Per Unit Cost $10.19Cost of Ending Inventory$22,927.50

Answered: Unit Costs, Inventory Valuation,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Unit Costs, Inventory Valuation, Variable and Absorption Costing

Snyder Company produced 99,100 units during its first year of operations and sold 96,850 at $20.79 per unit. The company chose practical activity—at 99,100 units—to compute its predetermined overhead rate. Manufacturing costs are as follows:

Direct materials	$552,978
Direct labor	97,118
Expected and actual variable overhead	359,733
Expected and actual fixed overhead	523,248

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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