Amiens Company produced 20,000 units during its first year of operations and sold 18,900 at$17 per unit. The company chose practical activity-at 20,000 units-to compute its predetermined overhead rate. Manufacturing costs are as follows:
Direct materials ...............$ 80,000
Direct labor .....................101,400
Variable overhead ...............15,600
Fixed overhead ..................54,600
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