Inventory Valuation under Absorption Costing Amiens Company produced 20,000 units during its first year of operations and sold 18,900 at $17 per unit. The company chose practical activity—at 20,000 units—to compute its predetermined overhead rate. Manufacturing costs are as follows:
Direct materials $80,000
Direct labor 101,400
Variable overhead 15,600
Fixed overhead 54,600
Required:
1. Calculate the unit cost for each of these four costs. Round your answers to the nearest cent.
Unit direct materials cost $
Unit direct labor cost $
Unit variable overhead cost $
Unit fixed overhead cost $
2. Calculate the cost of one unit of product under absorption costing.
3. How many units are in ending inventory?
4. Calculate the cost of ending inventory under absorption costing.