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

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There was no beginning inventory. Required: a. Compute the ending finished goods inventory under both absorption and variable costing Absorption? Variable? b. Compute the cost of goods sold under both absorption and variable costing. Absorption? Variable? There was no beginning inventory. Required: a. Compute the ending finished goods inventory under both absorption and variable costing Absorption? Variable? b. Compute the cost of goods sold under both absorption and variable costing. Absorption? Variable?

Answer rating: 100% (QA)

Solution 1 a Finished goods ending inventory 159375 109375 b Cost of goods sold 478125 328125 2 Reve... View the full answer