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