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Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402 Exercise 31
Unit Costs, Inventory Valuation, Variable and Absorption Costing
Snyder Company produced 90,000 units during its first year of operations and sold 87,000 at $21.80 per unit. The company chose practical activity-at 90,000 units-to compute its predetermined overhead rate. Manufacturing costs are as follows:
Required:
1. Calculate the unit cost and the cost of finished goods inventory under absorption costing.
2. Calculate the unit cost and the cost of finished goods inventory under variable costing.
3. What is the dollar amount that would be used to report the cost of finished goods inventory to external parties. Why?
Snyder Company produced 90,000 units during its first year of operations and sold 87,000 at $21.80 per unit. The company chose practical activity-at 90,000 units-to compute its predetermined overhead rate. Manufacturing costs are as follows:
Required:
1. Calculate the unit cost and the cost of finished goods inventory under absorption costing.
2. Calculate the unit cost and the cost of finished goods inventory under variable costing.
3. What is the dollar amount that would be used to report the cost of finished goods inventory to external parties. Why?
Explanation
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Verified
1)Compute unit cost and cost of finished...
Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
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