Compute the cost of the ending finished goods inventory

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Reference no: EM133033270

Problem - For Year 2000, Rider Ltd produced 100,000 units and sold 75,000 units. There was no opening inventory. Costs incurred for the production of 100,000 units are:

Direct materials

150,000

Direct labour

187,500

Variable manufacturing overhead

100,000

Variable selling and general expenses

100,000

Fixed manufacturing overhead

200,000

Fixed administrative expenses

100,000

Required -

(a) Compute the cost of the ending finished goods inventory under both absorption and marginal costing.

(b) Compute the cost of goods sold under absorption and marginal costing.

Reference no: EM133033270

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