Computing unit and inventory costs under absorption costing LO P1 Trio Company reports the following information for the current year, which is its first year of operations. Direct materials $15 per unit
Direct labor $16 per unit
Overhead costs for the year
Variable overhead $80,000 per year
Fixed overhead $160,000 per year
Units produced this year 20,000 units
Units sold this year 14,000 units
Ending finished goods inventory
in units 6,000 units
1. Compute the cost per unit using absorption costing
Cost per unit of finished goods using: Absorption costing
Cost per unit of finished goods
2. Determine the cost of ending finished goods inventory using absorption costing.
Cost per unit of finished goods using: Absorption costing
Number of units in finished goods
Total cost of finished goods inventory
3. Determine the cost of goods sold using absorption costing
Cost per unit of goods sold using: Absorption costing
Number of units in sold goods
Total cost of sold goods