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Category > Accounting Posted 19 Aug 2017 My Price 8.00

Lane Company

Exercise 8-23 Inventory Valuation under Variable Costing

Lane Company produced 50,000 units during its first year of operations and sold 47,300 at $12 per unit. The company chose practical activity—at 50,000 units—to compute its predetermined overhead rate. Manufacturing costs are as follows:

 

 

Direct materials

$123,000

Direct labor

93,000

Variable overhead

65,000

Fixed overhead

51,000

Required:

1.       Calculate the cost of one unit of product under variable costing.

2.       Calculate the cost of ending inventory under variable costing.

 

 

 

 

 

 

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Maurice Tutor
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Status NEW Posted 19 Aug 2017 02:08 PM My Price 8.00

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