Reference no: EM132565563

For the current year, Bose Inc., had sales of 42,000 units and production of 50,000 units. Other information for the year included:

Direct manufacturing labour$169,900

Variable manufacturing overhead73,500

Direct materials62,300

Variable selling expenses21,000

Fixed administrative expenses224,000

Fixed manufacturing overhead125,500

There was no beginning inventory.

Required:

Question a. Compute the ending finished goods inventory under both absorption and variable costing.

Question b. Compute the cost of goods sold under both absorption and variable costing.