Reference no: EM131693532

Question: Inventory Valuation under Absorption Costing Hansard Company produced 39,000 units during its first year of operations and sold 38,900 at $17 per unit. The company chose practical activity-at 39,000 units-to compute its predetermined overhead rate. Manufacturing costs are as follows:

Direct materials                  $ 79,500

Direct labor                         101,400

Variable overhead                  15,600

Fixed overhead                      50,700

Required: 1. Calculate the unit cost for each of these four costs.

2. Calculate the cost of one unit of product under absorption costing.

3. How many units are in ending inventory?

4. Calculate the cost of ending inventory under absorption costing.