For 2014, Nichols, Inc., had sales of 150,000 units and production of 200,000 units. Other information...

 

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For 2014, Nichols, Inc., had sales of 150,000 units and production of 200,000 units. Other information for the year included: Direct manufacturing labor 187,500 Variable manufacturing overhead 100,000 Direct materials 150,000 Variable selling expenses 100,000 Fixed administrative expenses 100,000 Fixed manufacturing overhead 200,000 There was no beginning inventory. Required: i. Compute the ending finished goods inventory under both absorption and variable costing. ii. Compute the cost of goods sold under both absorption and variable costing. For 2014, Nichols, Inc., had sales of 150,000 units and production of 200,000 units. Other information for the year included: Direct manufacturing labor 187,500 Variable manufacturing overhead 100,000 Direct materials 150,000 Variable selling expenses 100,000 Fixed administrative expenses 100,000 Fixed manufacturing overhead 200,000 There was no beginning inventory. Required: i. Compute the ending finished goods inventory under both absorption and variable costing. ii. Compute the cost of goods sold under both absorption and variable costing.

Answer rating: 100% (QA)

Answer Particulars Total Unit Produced Sold Per Unit Absorptio... View the full answer