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Clear Cut Glass and Mirror Inc. had sales of 37,500 units and production of 50,000 units. Other information for the year included: Direct manufacturing labour
Clear Cut Glass and Mirror Inc. had sales of 37,500 units and production of 50,000 units. Other information for the year included:
Direct manufacturing labour $375,000
Variable manufacturing overhead 200,000
Direct materials 300,000
Variable selling expenses 200,000
Fixed administrative expenses 200,000
Fixed manufacturing overhead 400,000
There was no beginning inventory.
Required:
- Compute the ending finished goods inventory under both absorption and variable costing. (16 marks)
- Compute the cost of goods sold under both absorption and variable costing. (4 marks)
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