Answer:
Required 1
Direct Materials Cost = $4.00
Direct Labor Cost = $5.07
Variable Overhead Cost = $0.78
Fixed Overhead Cost = $2.73
Required 2
Unit Cost = $12.58
Required 3
Units in Ending Inventory = 1,100
Required 4
Cost of ending inventory = $13,838
Explanation:
Unit Cost Calculations :
Direct materials = $ 80,000 ÷ 20,000 units
= $4.00
Direct labor = $101,400 ÷ 20,000 units
= $5.07
Variable overhead = $15,600 ÷ 20,000 units
= $0.78
Fixed overhead = $54,600 ÷ 20,000 units
= $2.73
Unit Cost (Absorption Costing) = All Manufacturing Costs
= $4.00 + $5.07 + $0.78 + $2.73
= $12.58
Units in Ending Inventory = Opening Inventory Units + Production - Sales
= 0 + 20,000 units - 18,900 units
= 1,100
Cost of ending inventory = Unit Cost × Units in Ending Inventory
= $12.58 × 1,100
= $13,838
