Problem 18.27 (Algorithmic) Unit Costs, Inventory Valuation, Variable and Absorption Costing

Snyder Company produced 91,300 units during its first year of operations and sold 88,000 at $21.72 per unit. The company chose practical activityat 91,300 unitsto compute its predetermined overhead rate. Manufacturing costs are as follows:

Direct materials	$567,886
Direct labor	119,603
Expected and actual variable overhead	381,634
Expected and actual fixed overhead	439,153

Required:

If required, round unit cost answers to the nearest cent.

1. Calculate the unit cost and the cost of finished goods inventory under absorption costing.

Unit Cost	$
Cost of finished goods inventory	$

2. Calculate the unit cost and the cost of finished goods inventory under variable costing.

Unit Cost	$
Cost of finished goods inventory	$

3. What is the dollar amount that would be used to report the cost of finished goods inventory to external parties? $