Information taken from Laramie Lumber Company’s records for the most recent year is as follows:
celina Hraee ay SRISSTOVOMUICS Ao RK 9h wale Geen Pan ne ee! $ 1,500,000 (LO 6,7,8) BirectimatenaluSec ess ere, -fay Seer esas 290,000 Direc tlaO res at mawer, Wer Reemscans ees 100,000 Variable manufacturing overhead................. 50,000 Fixed manufacturing overhead .................. 80,000 Variable selling and administrative costs........... 40,000 Fixed selling and administrative costs............. 20,000 Required

a. Assuming that Laramie Lumber Company uses variable costing, compute the inventoriable costs for the year. :

b. Compute the year’s inventoriable costs using absorption costing.

c. Now assume that the company uses throughput costing and has committed to spending for direct labor, variable overhead, and fixed overhead in the amounts given in the problem. Under this scenario, compute the company’s inventoriable cost for the year.