Inventory Valuation under Absorption Costing Amiens Company produced 20,000 units during its first year of operations and sold 18,900 at $17 per unit. The company chose practical activity-at 20,000 units-to compute its predetermined overhead rate. Manufacturing costs are as follows: 11eb71cd_0ee2_2d3b_a6e4_177b770f7385_SM1595_00 Required: 1. Calculate the unit cost for each of these four costs. 2. Calculate the cost of one unit of product under absorption costing. 3. How many units are in ending inventory? 4. Calculate the cost of ending inventory under absorption costing.

Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger

النسخة 6الرقم المعياري الدولي: 978-1305103962

Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger

النسخة 6الرقم المعياري الدولي: 978-1305103962

تمرين 16

Inventory Valuation under Absorption Costing
Amiens Company produced 20,000 units during its first year of operations and sold 18,900 at $17 per unit. The company chose practical activity-at 20,000 units-to compute its predetermined overhead rate. Manufacturing costs are as follows:

Required:
1. Calculate the unit cost for each of these four costs.
2. Calculate the cost of one unit of product under absorption costing.
3. How many units are in ending inventory?
4. Calculate the cost of ending inventory under absorption costing.

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موثّق

Absorption costing: Under absorption cos...