Snyder Company produced 90,000 units during its first year of operations and sold 86,100 at $19.92 per unit. The company chose practical activity—at 90,000 units—to compute its predetermined overhead rate. Manufacturing costs are as follows: Direct materials $515,700 Direct labor 66,600 Expected and actual variable overhead 347,400 Expected and actual fixed overhead 438,300 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 $fill in the blank 1 Cost of finished goods inventory $fill in the blank 2 2. Calculate the unit cost and the cost of finished goods inventory under variable costing. Unit Cost $fill in the blank 3 Cost of finished goods inventory $fill in the blank 4 3. What is the dollar amount that would be used to report the cost of finished goods inventory to external parties? $fill in the blank 5
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Snyder Company produced 90,000 units during its first year of operations and sold 86,100 at $19.92 per unit. The company chose practical activity—at 90,000 units—to compute its predetermined overhead rate.
| Direct materials | $515,700 |
| Direct labor | 66,600 |
| Expected and actual variable overhead | 347,400 |
| Expected and actual fixed overhead | 438,300 |
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 | $fill in the blank 1 |
| Cost of finished goods inventory | $fill in the blank 2 |
2. Calculate the unit cost and the cost of finished goods inventory under variable costing.
| Unit Cost | $fill in the blank 3 |
| Cost of finished goods inventory | $fill in the blank 4 |
3. What is the dollar amount that would be used to report the cost of finished goods inventory to external parties?
$fill in the blank 5
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