Absorption and Variable Costing Methods

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 th 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. Compute Bondware's March amoutn of ending inventory under both absorption and variable costing if the FIFO inventory method was used Compute Bondware's March Cost of Goods Sold using both the variable and absorption costing methods