ACC 2362 - Chapter 8 Review Exercises Maxwell Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable Cost per unit: Direct Materials $18.00 Direct Labor $7.00 Variable Overhead $2.00 Variable Selling and Administrative $5.00 Fixed costs per year: Fixed Overhead $160,000.00 Fixed Selling and Administrative $110,000.00 During the year, the company produced 20,000 units and sold 16,000. The selling price of the company's product is $50 per unit. Under the absorption costing method: 1) Compute the unit product cost 2) Compute the value of ending inventory 3) Prepare an income statement for the year. Under the variable costing method: 1) Compute the unit product cost 2) Compute the value of ending inventory 3) Prepare an income statement for the year. Walker Company produces blenders and coffeemakers. During the past year, the company produced and sold 100,000 blenders and 50,000 coffeemakers. Fixed costs for Walker totaled $250,000, of which $90,000 can be
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