Exercise $8-26$

Information taken from Allied Pipe Company's records for the most recent year is as follows: Absorption versus Variable

Direct material used

$$340,000$

Costing

Direct labor

$($L$08-1)$

Variable manufacturing overhead

Fixed manufacturing overhead

Variable selling and administrative costs

Fixed selling and administrative costs

$160,000$

$75,000$

$125,000$

$70,000$

$37,000$

Required:

Assuming Allied Pipe Company uses absorption costing, compute the inventoriable costs for the year.

Compute the year's inventoriable costs using variable costing.