Eastern Auto produces and sells an auto part for $30.00 per unit. Last year, 100,000 units were
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Eastern Auto produces and sells an auto part for $30.00 per unit. Last year, 100,000 units were produced, and 75,000 units were sold. There were no units in beginning finished goods inventory. Other information for the year includes:
Variable manufacturing cost per unit | $15.00 |
Variable selling and administrative cost per unit | $3.00 |
Annual fixed manufacturing costs | $375,000 |
Annual fixed selling and administrative costs | $135,000 |
What amount will Eastern Auto report as cost of goods sold under absorption costing and under variable costing respectively?
Related Book For
Cost Management Measuring Monitoring And Motivating Performance
ISBN: 9781118168875
2nd Canadian Edition
Authors: Leslie G. Eldenburg, Susan Wolcott, Liang Hsuan Chen, Gail Cook
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