Question

Refer to the information for Romer Company on the shown below.
Romer Company produced 14,000 units during its first year of operations and sold 13,800 at $ 22 per unit. The company chose practical activity—at 14,000 units—to compute its predetermined overhead rate. Manufacturing costs are as follows:
Direct materials .......... $88,200
Direct labor .......... 105,000
Variable overhead ......... 15,820
Fixed overhead .......... 49,000
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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  • CreatedSeptember 22, 2015
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