Answer:
1. $38.00
2. $228,000
3. $627,000
Explanation:
Absorption Costing also known as full costing includes both the<em> fixed </em>and <em>variable</em> manufacturing overheads in <u>product valuation</u>. All <em>no-n manufacturing overheads</em> are regarded as <u>period costs</u> and are not included in product valuation.
<u>Product cost per unit calculation :</u>
Direct materials $13.00
Direct labor $19.00
Overhead costs
Variable overhead ($45,000/22,500) $2.00
Fixed overhead ($90,000/22,500) $4.00
Total Unit Cost $38.00
<u>Cost of ending finished goods inventory using absorption costing :</u>
Total Cost = Total Unit Cost × Number of Units in Finished Goods
= $38.00 × 6,000 units
= $228,000
<u>Cost of goods sold using absorption costing :</u>
Total Cost = Total Unit Cost × Number of Units Sold
= $38.00 × 16,500 units
= $627,000