Inventory Valuation under Absorption and Variable Costing with Decrease in Ending Inventory

The following information pertains to Chacon Inc. for last year:

Beginning inventory in units 6,000

Units produced 20,000

Units sold 23,700

Costs per unit:

Direct materials $12.00

Direct labor $4.00

Variable overhead $2.25

Fixed overhead* $4.15

Variable selling expenses $3.00

Fixed selling and administrative expenses $24,300

* Fixed overhead totals $83,000 per year.

Required:

1.Calculate the cost of one unit of product under absorption costing. Round your answer to the nearest cent.

$_____________per unit

2.Calculate the cost of one unit of product under variable costing. Round your answer to the nearest cent.

$_____________per unit

3.How many units are in ending inventory?

_____________units

4.Calculate the cost of ending inventory under absorption costing.

$_____________

5.Calculate the cost of ending inventory under variable costing.

$_____________