Amalgamated Glass and Mirror Inc. had sales of 37,500 units and production of 50,000 units. Other information for the year included:Direct manufacturing labour $375,000Variable manufacturing overhead 200,000Direct materials 300,000Variable selling expenses 200,000Fixed administrative expenses 200,000Fixed manufacturing overhead 400,000There was no beginning inventory.

Required:

a. What is the ending finished goods inventory under both absorption and variable costing?

A. $128,750 - under absorption costing; $91,750 - under variable costing

B. $159,375 - under absorption costing; $109,375 - under variable costing

C. $118,750 - under absorption costing; $218,750 - under variable costing

D. $138,750 - under absorption costing; $82,750 - under variable costing

b. What is the cost of goods sold under both absorption and variable costing.?

A. $356,250 - under absorption costing; $956,250 - under variable costing

B. $956,250 - under absorption costing; $656,250 - under variable costing

C. $478,125 - under absorption costing; $328,125 - under variable costing

D. $756,250 - under absorption costing; $856,250 - under variable costing

Answer rating: 100% (QA)

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