Richettiproduces stereo speakers. The selling price per pair of speakers is $1,800. There is no beginning inventory.

Costs involved in production are:

Direct material $161

Direct labor $183

Variable manufacturing overhead $107

Total variable manufacturing costs per unit

$451

Fixed manufacturing overhead per year

$594,000

In addition, the company has fixed selling and administrative costs:

Fixed selling costs per year

$200,500

Fixed administrative costs per year

$102,400

During the year,Richettiproduces1,500pairs of speakers and sells1,200pairs.

What is cost of goods sold using full costing?

What is cost of goods sold using variable costing?