Question

6. . Kaprelian Company reported the following information about the production and sale of its only product during the first month of operations:

Selling price per unit                                                                      $300

Sales                                                                                           $480,000

Direct materials used                                                               $220,000

Direct labor                                                                               $200,000

Variable factory overhead                                                        $60,000

Fixed factory overhead                                                             $80,000

Variable selling and administrative expenses                       $20,000

Fixed selling and administrative expenses                            $10,000

Ending inventory, Direct Materials                                                    0

Ending inventory, Work-in-process                                                   0

Ending inventory, Finished Goods                                      400 units

Under variable costing, the variable manufacturing cost of goods sold is ________.

A) $256,000

B) $272,000

C) $320,000

D) $384,000

Answer 1

Option D is correct.