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ID: 2564986 • Letter: N
Question
nt/takeAssignmentMaindo?inwokers assignments&takeAssignmentSessionLocator; assignment-take8inprogress-talse eBook ideo During the most recent year, Judson Company had the following data associated with the product it makes: Units in beginning inventory Units produced Units sold ($300 per unit) Variable costs per unit: 15,700 12,700 Direct materials Direct labor Variable overhead Fixed costs Fixed overhead per unit produced ) Fixed selling and administrative $140,000 Required: 1. How many units are in ending inventory? 3,300 units 2. Using absorption costing, calculate the per-unit product cost per unit 3. What is the value of ending inventory under absorption costieg? 8 9 5Explanation / Answer
Answer 1
Ending Inventory = Beginning Inventory +units purchase - units sold
= 300 +15,700 - 12,700 = 3,300 units
Answer 2
Under absorption costing method :
Product cost per unit = direct materials per unit + direct labor per unit + variable overhead per unit + fixed overhead per unit.
Note :Fixed overhead per unit ( though already given in question) = Fixed overhear / No of units produced ;
Selling &administrative cost are assign to units sold & not units produced.
Per unit product cost = $20 +$60 + $11 + $30 = $121
Answer 3
Value of Ending Inventory under absorption costing = Ending Inventory * Per unit product cost
= 3,300 units * $121 = $399,300
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