Question

eBook Show Me How Calculator 10,000 Units produced Units sold ($60 per unit) Variable costs per unit: 8,800 Direct materials Direct labor Variable overhead $12 $7 $5 Fixed costs: Fixed overhead per unit produced Fixed selling and administrative $8 $138,000 Required 1. Calculate the cost of goods sold under variable costing. Feedback Y Chack My Work Determine per-unit cost under variable costing and apply the unit cost to the number Cost of Goods Sold Units sold x Unit cost Check My Work

Answer 1

Calculation of Cost of goods sold under Variable costing
Cost of goods sold under variable costing = Units sold * Unit cost
Cost of goods sold under variable costing = 8800 units * $24 = $2,11,200
Working
Unit cost under Variable costing
	Per Unit
Direct Materials	$12.00
Direct Labor	$7.00
Variable Overhead	$5.00
Unit cost under Variable costing	$24.00