1.Praeger Company began operations January 1 and produces a single : 1416289
1.Praeger Company began operations on January 1 and produces a single product that sells for $10.00 per unit. Standard capacity is 100,000 units per year. During the year, 100,000 units were produced and 80,000 units were sold. There was no inventory at the beginning of the year. Manufacturing costs and selling and administrative expenses follow:
Fixed CostsVariable Costs
Raw materials--$2.50 per unit produced
Direct labor--1.50 per unit produced
Factory overhead$250,000.50 per unit produced
Selling and administrative100,000.50 per unit sold
There were no variances from the standard variable costs. Any under- or overapplied overhead is written off directly at year end as an adjustment to cost of goods sold.
a.In presenting inventory on the balance sheet at December 31, what is the unit cost under absorption costing?
b.In presenting inventory on the balance sheet at December 31, what is the unit cost under variable costing?
c.What is the net income for the year under absorption costing?
d.What is the net income for the year under direct costing?
e.What is the cost of the ending inventory under absorption costing?
f.What is the cost of the ending inventory under variable costing?