San Remo Company produced 75,000 units last year. The company sold 74,600 units and there was no
Question:
San Remo Company produced 75,000 units last year. The company sold 74,600 units and there was no beginning inventory. The company chose practical activity—at 75,000 units—to compute its predetermined overhead rate. Manufacturing costs are as follows:
Direct materials .......$615,000
Direct labor .........105,000
Variable overhead .......78,750
Fixed overhead ......270,000
Required:
1. Calculate the cost of one unit of product under absorption costing.
2. Calculate the cost of one unit of product under variable costing.
3. Calculate the cost of ending inventory under absorption costing.
4. Calculate the cost of ending inventory under variable costing.
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
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1 Unit direct materials cost 820 Unit direct labor cost 140 Unit variable overhead cost 105 ...View the full answer
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Related Book For 
Cornerstones of Managerial Accounting
ISBN: 978-0324660135
3rd Edition
Authors: Mowen, Hansen, Heitger
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