Inventory Valuation under Absorption and Variable Costing with Decrease in Ending Inventory The following information pertains to Chacon Inc. for...

Inventory Valuation under Absorption and Variable Costing with Decrease in Ending Inventory

The following information pertains to Chacon Inc. for last year:

Beginning inventory in units 6,000

Units produced 20,000

Units sold 23,700

Costs per unit:

Direct materials $12.00

Direct labor $4.00

Variable overhead $2.25

Fixed overhead* $4.15

Variable selling expenses $3.00

Fixed selling and administrative expenses $24,300

* Fixed overhead totals $83,000 per year.

Required:

1. Calculate the cost of one unit of product under absorption costing. Round your answer to the nearest cent.

$_____________per unit

2. Calculate the cost of one unit of product under variable costing. Round your answer to the nearest cent.

$_____________per unit

3. How many units are in ending inventory?

_____________ units

4. Calculate the cost of ending inventory under absorption costing.

$_____________

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

$_____________