Beginning Inventory (10,000 Units)
Direct Materials: $134,000
Direct Labor: $310,000
Variable Factory Overhead: $36,000
Fixed Factory Overhead: $40,000
Current Period Costs (50,000 Units):
Direct Materials: $700,000
Direct Labor: $1,620,000
Variable Factory Overhead: $180,000
Fixed Factory Overhead: 200,000
Selling and Administrative Expenses:
Variable: $130,000
Fixed: $90,000
Note: Fixed Overhead Per Unit Is $4.00 Required;
1) Based on the above data, compute Cost of Goods Sold using Absorption Costing.
2) Based on the above data, compute Cost of Goods Sold using Variable Costing.