Unit Costs, Inventory Valuation, Variable and Absorption Costing

Snyder Company produced 86,200 units during its first year of operations and sold 83,450 at $20.81 per unit. The company chose practical activityat 86,200 unitsto compute its predetermined overhead rate. Manufacturing costs are as follows:

Direct materials $517,200 Direct labor 87,062 Expected and actual variable overhead 359,454 Expected and actual fixed overhead 428,414 Required:

If required, round unit cost answers to the nearest cent.

1. Calculate the unit cost and the cost of finished goods inventory under absorption costing.

Unit Cost $ Cost of finished goods inventory $ 2. Calculate the unit cost and the cost of finished goods inventory under variable costing.

Unit Cost $ Cost of finished goods inventory $ 3. What is the dollar amount that would be used to report the cost of finished goods inventory to external parties?

$

Why?