Calculate the unit cost and the cost of finished goods

Assignment Help Corporate Finance

Reference no: EM13948383

Witherspoon Company produced 20,000 units during its first year of operations and sold 19,350 units. The company chose practical activity-at 20,000 units-to compute its predetermined overhead rate. Manufacturing costs are as follows:

Direct materials $120,600

Direct labor 90,000

Expected and actual variable overhead 26,400 Expected and actual fixed overhead 68,000

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?

Reference no: EM13948383

Questions Cloud

Cobweb model on a spreadsheet : Set up the following cobweb model on a spreadsheet for t =0 to 10

Shell script that will count the number of files in account : Modify the script to get it to back up to "X" number of days and list the files that were modified for each day.

Events or eras in health care and their impact : It is essential to identify, examine, and understand the history and foundations of health care in the U.S. as this will be the foundation for understanding health care systems though this course and in practice. Students will need to show a thor..

Determining the phenomenon of luminescence : 1. (a) In your own words describe briefly the phenomenon of luminescence. (b) What is the distinction between fluores- cence and phosphorescence?

Calculate the unit cost and the cost of finished goods : Calculate the unit cost and the cost of finished goods inventory under absorption costing. Calculate the unit cost and the cost of finished goods inventory under variable costing.

Absorption mechanisms in nonmetallic materials : 1. Briefly explain what determines the characteristic color of (a) a metal and (b) a trans- parent nonmetal. 2. Briefly explain why some transparent materials appear colored while others are color- less. 3. Briefly describe the three absorption mecha..

What is your greatest challenge as an organization : Please tell me about your organization. What is your greatest challenge as an organization? What do you think is your organization's greatest opportunity? Who are your current customers? How do you currently market to those customers

What is the rational for methodology : What are the four purposes of this chapter: (1) describe the research methodology of this study, (2) explain the sample selection, (3) describe the procedure used in designing the instrument and collecting the data, and (4) provide an explanation ..

Write a java program to practice the use of java file i/o. : Write a Java program to practice the use of Java file I/O. Class methods are needed to break up solution in smaller parts.Program will read several series of heart rates from a file, compute min, max, & fitness quotient for each series, and output ..

User Account

All Pages