Silver Rex,Inc Requirements:
A)Compute Silver Rex's Unit Product Cost Under Absorption Costing

Essay

Silver Rex,Inc.has provided the following data for the year:
$$\begin{array} { | l | r |l| } \hline \text { Direct materials } & \$ 10& \text { per unit } \\\hline \text { Direct labor } & \$ 15& \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 20 &\text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 25,000 &\text { per year } \\\hline \text { Fixed selling and administrative costs } & \$ 15,000 &\text { per year } \\\hline \text { Sales price } & \$ 75 &\text { per unit } \\\hline \text { Beginning Finished Goods Inventory } & 500& \text { units } \\\hline \text { Units produced } & 5,000& \text { units } \\\hline \text { Units sold } & 4,500& \text { units } \\\hline\end{array}$$ Requirements:
a)Compute Silver Rex's unit product cost under absorption costing and variable costing.
b)Prepare income statements for Silver Rex using absorption costing and variable costing.
c)Calculate the balance in Finished Goods Inventory using absorption costing and variable costing.
Assume that the production level,costs,and sales prices were the same in the previous year.