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6. Carolina Corporation, which uses throughput costing, began operations at the start of the current year. Planned and actual production was 20,000 units, and sales
6. Carolina Corporation, which uses throughput costing, began operations at the start of the current year. Planned and actual production was 20,000 units, and sales totalled 17,500 units at $95 per unit. Cost data for the year were as follows: Direct materials (per unit) Conversion cost: Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable Selling and administrative costs Fixed Selling and administrative costs $18 $ 160,000 280,000 340,000 230,000 200,000 Required: (a) Compute the cost of the ending inventory under absorption costing. (4 marks) (b) Compute the Contribution Margin under variable costing. (5 marks) (c) Compute the Throughput Margin and the Net Profit under throughput costing. (6 marks)
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