Unit Costs, Inventory Valuation, Variable and Absorption Costing

Snyder Company produced 94,200 units during its first year of operations and sold 91,900 at $21.27 per unit. The company chose practical activityat 94,200 unitsto compute its predetermined overhead rate. Manufacturing costs are as follows:

Direct materials	$610,416
Direct labor	124,344
Expected and actual variable overhead	343,830
Expected and actual fixed overhead	500,202

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?