Inventory Valuation under Absorption Costing

Hansard Company produced 39,410 units during its first year of operations and sold 38,890 at $17 per unit. The company chose practical activityat 39,410 unitsto compute its predetermined overhead rate. Manufacturing costs are as follows:

Direct materials

$82,350

Direct labor

101,600

Variable overhead

15,400

Fixed overhead

50,500

Required:

1.Calculate the unit cost for each of these four costs. Round your answers to the nearest cent.

Unit direct materials cost

Unit direct labor cost

Unit variable overhead cost

Unit fixed overhead cost

2.Calculate the cost of one unit of product under absorption costing. Round your answer to the nearest cent.

3.How many units are in ending inventory?

4.Calculate the cost of ending inventory under absorption costing. Round your answer to the nearest dollar.