Question

Trio Company reports the following information for the current year, which is its first year of operations. 15 per unit 16 per unit Direct materials Direct labor Overhead costs for the year Variable overhead Fixed overhead Units produced this year Units sold this year Ending finished goods inventory in units $ 80,000 per year $160,000 per year 20,000 units 14,000 units 6,000 units Compute the product cost per unit using variable costing. Cost per unit of finished goods using: Variable costing 0 Cost per unit of finished goods Determine the cost of ending finished goods inventory using variable costing Cost per unit of finished goods using: Variable costing Number of units in finished goods Total cost of finished goods inventory Determine the cost of goods sold using variable costing. Cost per unit of goods sold using Variable costing Number of units in sold goods Total cost of sold goods

Answer 1

1 Product cost per unit using variable costing: 2 Cost per unit of finished goods using: 3 Direct materials per unit 4 Direct labor per unit 5 Variable overheads per unit 6 Cost per unit of finished goods Variable Costing $15 $16 $4 $35 8 Cost of ending finished goods inventory using variable costing: 9 Cost per unit of finished goods using: Variable Costing 10 Number of units in finished goods 6,000 11 Total cost of finished goods inventory $210,000 12 13 Cost of goods sold using variable costing: 14 Cost per unit of goods sold using: Variable Costing 15 Number of units in sold goods 14.000 16 Total cost of sold goods $490,000 Calculations are shown below: B Variable Costing 1 Product cost per unit using variable costing: 2 Cost per unit of finished goods using: 3 Direct materials per unit 4 Direct labor per unit 5 Variable overheads per unit 6 Cost per unit of finished goods 16 =80000/20000 =SUM(B3:B5) 8 Cost of ending finished goods inventory using variable costing: 9 Cost per unit of finished goods using: Variable Costing 10 Number of units in finished goods 6000 11 Total cost of finished goods inventory =B10*B6 12 13 Cost of goods sold using variable costing: 14 Cost per unit of goods sold using: 15 Number of units in sold goods 16 Total cost of sold goods Variable Costing 14000 =B15*B6