Absorption and Variable Costing; Cost of Goods Sold Bondware Inc., has a highly

Question

Absorption and Variable Costing; Cost of Goods Sold

Bondware Inc., has a highly automated assembly line that uses very little direct labor. Therefore, direct labor is part of variable overhead. For March, assume that it incurred the following unit costs:

Direct materials

$520

Variable overhead

460

Fixed overhead

180

The 100 units of beginning inventory for March had an absorption costing value of $92,000 and a variable costing value of $78,000. For March, assume that Bondware Inc. produced 500 units and sold 540 units.

Compute Bondware's March Cost of Goods Sold using both the variable and absorption costing methods.

Cost of Goods Sold

Absorption costing

$

Answer

Variable costing

$

Answer

0

Direct materials

$520

Variable overhead

460

Fixed overhead

180

QUESTIONIncorrect Ponts out of 2.00 PFlag question Absorption and Variable Costing; Cost of Goods Sold Bondware Inc., has a highly automated assembly line that uses very little direct labor. Therefore, direct labor is part of variable overhead. For March, assume that it incurred the following unit costs: Direct materials $520 Variable overhead 460 Fixed overhead 180 The 100 units of beginning inventory for March had an absorption costing value of $92,000 and a variable costing value of $78,000. For March, assume that Bondware Inc. produced 500 units and sold 540 units. Compute Bondware's March Cost of Goods Sold using both the variable and absorption costing methods. Cost of Goods Sold Absorption costing 521400 Variable costing Check

Explanation / Answer

Cost of Goods Sold Absorption costing 602400 =92000+440*(520+460+180) Variable costing 509200 =78000+440*(520+460)

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