(Production cost; absorption vs. variable costing) The Clean-N-Brite Dish Soap Company began business in 1996. Production for the year was 100,000 bottles of dish soap, and sales were 98,000 bottles. Costs incurred during the year were

a. What was the actual production cost per bottle under variable costing? Un¬ der absorption costing?

b. What was variable Cost of Goods Sold for 1996 under variable costing?

c. What was Cost of Goods Sold for 1996 under absorption costing?

d. What was the value of ending inventory under variable costing? Under ab¬ sorption costing?

e. How much fixed overhead was charged to expense in 1996 under variable costing? Under absorption costing?LO1

Transcribed Image Text:

Chemicals used Direct labor $28,000 13,000 Variable overhead 24,000 Fixed overhead 12,000 Variable selling expenses 5,000 Fixed selling and administrative expenses 14,000 Total actual costs $96,000