Question

Exercise 6-1 rhead 25,000 units 19,000 units 6,000 units unit of

Answer 1

Answers

Cost per unit of finished goods using	Absorption Costing
Direct Material per unit	$13
Direct Labor per unit	$17
Variable overhead per unit [75000 / 25000 units]	$3
Fixed overhead per unit [150000 / 25000 units]	$6
Cost per unit of finished goods	$39
Cost per unit of finished goods using	Absorption Costing
No. of units in finished goods	6,000
Total Cost of finished goods inventory [6000 x $39]	$234,000
Cost per unit of goods sold using	Absorption Costing
No. of units in sold goods	19,000
Total Cost of Goods Sold [ 19000 units x $39]	$741,000