Question

For the current year, Bose Inc., had sales of 42,000 units and production of 50,000 units....

For the current year, Bose Inc., had sales of 42,000 units and production of 50,000 units. Other information for the year included:

Direct manufacturing labour$169,900

Variable manufacturing overhead73,500

Direct materials62,300

Variable selling expenses21,000

Fixed administrative expenses224,000

Fixed manufacturing overhead125,500

There was no beginning inventory.

Required:

a.Compute the ending finished goods inventory under both absorption and variable costing.

b.Compute the cost of goods sold under both absorption and variable costing.  

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