Advanced Company reports the following information for the current year. All beg

Question

Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year. Units produced this year 37,000 units Units sold this year 22,200 units Direct materials $21 per unit Direct labor $23 per unit Variable overhead $111,000 in total Fixed overhead $185,000 in total

2. Required information Given Advanced Company's data, compute cost per unit of finished goods under variable costing.

$44.00

$49.00

$45.88

$47.00

$52.00

3. Required information Given Advanced Company's data, compute cost per unit of finished goods under absorption costing.

$44.00

$57.33

$49.00

$47.00

$52.00

Explanation / Answer

2.Cost per unit under variable costing

Direct material                                                  $ 21

Direct labor $ 23

Variable overhead (111,000/37,000) $ 3

------------

$ 47

-----------------------------------------------------------------------------------------------------------------------

3.Cost per unit under absorption costing

Direct material                                                  $ 21

Direct labor $ 23

Variable overhead (111,000/37,000) $ 3

Fixed overhead (185,000 / 37000) $ 5

------------

$ 52

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.