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Problem - During the most recent year, Osterman Company had the following data:
Units in beginning inventory
---
Units produced
10,000
Units sold ($47 per unit)
9,300
Variable costs per unit:
Direct materials
$9
Direct labor
$6
Variable overhead
$4
Fixed costs:
Fixed overhead per unit produced
$5
Fixed selling and administrative expenses
$138,000
Required -
1. Calculate the cost of goods sold under variable costing.
2. Prepare an income statement using variable costing.
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