Knowledge Check 01

	January
Beginning inventory	0
Units produced	500
Units sold	400
Ending inventory	100

Excerpt from Wallis Corporation

	Per Unit		Per Month
Selling price	$	100
Direct materials		30
Direct labor		20
Variable manufacturing overhead		10
Variable selling and administrative expenses		7
Fixed manufacturing overhead			$	10,000
Fixed selling and administrative expenses				3,000

What is the cost of goods sold for the month of January using the absorption costing method?

• $24,000

• $30,000

• $32,000

• $40,000