Absorption and Variable Costing; Inventory Valuation

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$$450$Variable overhead$250$Fixed overhead$550$

The $1,200$ units of beginning inventory for March had an absorption costing value of $$1,500,000$ and a variable costing value of $$840,000.$ For March, assume that Bondware Inc. produced $3,000$ units and sold $3,500$ units.

Computer Bondware's March amount of ending inventory under both absorption and variable costing if the FIFO inventory

$$

InventoriesBeginningEndingRaw materials$ $110,000$$ $105,000$Work$-$in$-$process$75,00092,000$Finished goods$125,000135,000$

Determine each of the following:

$($a$)$ Cost of raw materials purchased

$Answer $1$

$($b$)$ Direct labor costs charged to production

$Answer $2$

$($c$)$ Cost of goods manufactured

$Answer $3$

$($d$)$ Cost of goods sold