Unit Costs, Inventory Valuation, Variable and Absorption Costing

Snyder Company produced 80,900 units during its first year of operations and sold 77,100 at $21.60 per unit. The company chose practical activityat 80,900 unitsto compute its predetermined overhead rate. Manufacturing costs are as follows:

Direct materials	$457,085
Direct labor	87,372
Expected and actual variable overhead	300,139
Expected and actual fixed overhead	432,006

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? $

Why?