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Question - Information taken from Allied Pipe Company's records for the most recent year is as follows:
Direct material used $ 340,000
Direct labor 160,000
Variable manufacturing overhead 75,000
Fixed manufacturing overhead 125,000
Variable selling and administrative costs 70,000
Fixed selling and administrative costs 37,000
Required -
1. Assuming Allied Pipe Company uses absorption costing, compute the inventoriable costs for the year.
2. Compute the year's inventoriable costs using variable costing.
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