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Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787 Exercise 11
Unit Costs, Inventory Valuation, Variable and Absorption Costing
Snyder Company produced 90,000 units during its first year of operations and sold 87,000 at $21.80 per unit. The company chose practical activity-at 90,000 units-to compute its predetermined overhead rate. Manufacturing costs are as follows:
Required:
1. Calculate the unit cost and the cost of finished goods inventory under absorption costing.
2. Calculate the unit cost and the cost of finished goods inventory under variable costing.
3. What is the dollar amount that would be used to report the cost of finished goods inventory to external parties. Why?
Snyder Company produced 90,000 units during its first year of operations and sold 87,000 at $21.80 per unit. The company chose practical activity-at 90,000 units-to compute its predetermined overhead rate. Manufacturing costs are as follows:
Required:
1. Calculate the unit cost and the cost of finished goods inventory under absorption costing.
2. Calculate the unit cost and the cost of finished goods inventory under variable costing.
3. What is the dollar amount that would be used to report the cost of finished goods inventory to external parties. Why?
Explanation
Verified
Verified
1)
Compute unit cost and cost of finish...
Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
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