Question

Exercise 19-1 Computing unit and inventory costs under absorption costing LOP1 Trio Company reports the following information for the current year, which is its first year of operations 11 4 L 1 €7.510 Eyes # 1,000 per year Compute the product cost per unit ang absorption costing Coster unit of finished goodswing A toft Next >

Answer 1

Compute the cost per unit using absorption costing. Cost per unit of finished goods using: Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead per unit Cost per unit of finished goods Determine the cost of ending finished goods inventory usingabsorption costing. Cost per unit of finished goods using: Absorption costing 15 16 3 40 Absorption costing Number of units in finished goods Total cost of finished goods inventory Determine the cost of goods sold using absorption costing. Cost per unit of goods sold using Number of units in sold goods Total cost of sold goods 8,000 320,000 Absorption costing 14,500 580,000 Working Notes: Variable overhead per unit = S67,500/22,500 = $3 Fixed overhead per unit = $135,000/22,500 = $6 Total cost of finished goods inventory = 8,000*S40 = $320,000 %3D Total cost of sold goods = 14,500*S40 = S580,000 %3D