General Electric (GE) bases most of its US production out of the GE Appliance Park in Louisville, Kentucky. Building One at Appliance Park (abbreviated as AP1) manufactures both washers and dryers. While there are several different models of each, for purposes of this problem, assume that all washers are identical and that all dryers are identical. AP1 uses a standard costing system, in which estimation error is NOT allocated to specific cost objects. AP1 uses a weighted average cost approach over all of its inventory and allocates fixed overhead based on direct labor hours.

As of August 31, AP1 has finished goods inventory consisting of 400 washers and 800 dryers. The value of this inventory, under absorption costing, on AP1s balance sheet as of 8/31 includes $262,000 of fixed overhead costs for the washers and $369,600 of fixed overhead costs for the dryers.

For the month of September, AP1 expects to produce 5,000 washers and 5,000 dryers, using 30,000 direct labor hours for the washers and 25,000 direct labor hours for the dryers. Due to the residual effects of a large fire in April, actual output is only 4,000 washers and 3,000 dryers. Direct labor hours are 29,000 for the washers and 21,000 for the dryers. Total fixed overhead for the plant is expected to be $5,500,000. Actual fixed overhead is $5,700,000.

AP1 sells 4,200 washers and 3,300 dryers during September (all other appliances are in finished goods inventory as of September 30).

Assuming that AP1 uses (and has always used) variable costing, how much fixed overhead will be included in:

a) finished goods inventory on the 9/30 balance sheet? __________

b) cost of goods sold on the income statement for the month ended 9/30? __________

HERE IS A HELPFUL TABLE of the particulars.

	Washers	Dryers	Total
Opening Stock as on Aug 31	400	800
Goods produced during September	4,000	3,000
Goods sold	-4,200	-3,300
Closing Stock as on Sep 30	200	500
Fixed Overhead incurred during September			5,500,000
Allocation basis for Fixed Overhead	30,000	25,000
Fixed Overhead allocated	3,000,000	2,500,000
Fixed Overhead per unit of production	600	500