Information taken from Allied Pipe Company's records for the most recent year is as follows:
Direct material used....................................................................... $340,000
Direct labor ..................................................................................... 160,000
Variable manufacturing overhead ................................................... 75,000
Fixed manufacturing overhead........................................................ 125,000
Variable selling and administrative costs ........................................ 70,000
Fixed selling and administrative costs............................................ 37,000
Required:
1. Assuming Allied Pipe Company uses absorption costing compute the inventoriable costs for the year.
2. Compute the year's inventoriable costs using variable costing.