FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Carolina Corporation, which uses throughput costing, began operations at the start of the current year. Planned and actual production
equaled 24,500 units, and sales totaled 21,000 units at $98 per unit. Cost data for the year were as follows:
Direct materials (per unit)
Conversion cost:
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Selling and administrative costs (total)
A. Total cost
B. Year-end inventory:
Absorption costing
Variable costing
C. Total costs:
$
Absorption costing
Variable costing
21
Required:
A. Compute the company's total cost for the year.
B. How much of this cost would be held in year-end Inventory under (1) absorption costing and (2) variable costing?
C. How much of the company's total cost for the year would appear on the period's income statement under (1) absorption costing and
(2) variable costing?
190,000
300,000
392,000
436,000
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