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R(9) 8-27-Solution

# R(9) 8-27-Solution - Recitation Problem R(9 827 Solutions...

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Recitation Problem R(9): 8-27 Solutions PROBLEM 8-27 (35 MINUTES) 1. Total cost: Direct material (10,000 units x \$36)…………... \$ 360,000 Direct labor……………………………………….. 135,000 Variable manufacturing overhead……………. 195,000 Fixed manufacturing overhead……………….. 660,000 Variable selling and administrative costs (9,600 units x \$24)…………………………… 230,400 Fixed selling and administrative costs……… 354,000 Total……………………………………………. \$1,934,400 2. The cost of the year-end inventory of 400 units (10,000 units produced – 9,600 units sold) is computed as follows: Absorption Costing Variable Costing Throughput Costing Direct material………………………….. \$ 360,000 \$360,000 \$360,000 Direct labor……………………………… 135,000 135,000 Variable manufacturing overhead….. 195,000 195,000 Fixed manufacturing overhead……… 660,000 ________ ________ Total product cost………………… \$1,350,000 \$690,000 \$360,000 Cost per unit (total ÷ 10,000 units)… \$135 \$69 \$36 Year-end inventory (400 units x cost per unit)……………………………... \$ 54,000 \$ 27,600 \$ 14,400 3.

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