Question: Inventory Valuation under Absorption and Variable Costing San Remo Company produced 80,000 units last year. The company sold 79,000 units and there was no beginning

Inventory Valuation under Absorption and Variable Costing

San Remo Company produced 80,000 units last year. The company sold 79,000 units and there was no beginning inventory. The company chose practical activityat 80,000 unitsto compute its predetermined overhead rate. Manufacturing costs are as follows:

Direct materials	$685,400
Direct labour	119,600
Variable overhead	101,200
Fixed overhead	263,120

Required:

1. Calculate the cost of one unit of product under absorption costing. Round your interim calculations and final answer to the nearest cent. Use rounded answer in subsequent requirements. $fill in the blank 1

2. Calculate the cost of one unit of product under variable costing. Round your interim calculations and final answer to the nearest cent. Use rounded answer in subsequent requirements. $fill in the blank 2

3. Calculate the cost of ending inventory under absorption costing. $fill in the blank 3

4. Calculate the cost of ending inventory under variable costing. $fill in the blank 4

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