GAZELLE ANNE A.

CALMA BSA2 MWF8:30-9:30

1. ABSORPTION COSTING

Direct Materials $ 540,000.00

Direct Labor 99000.00
Expected and Actual Variable Overhead 369000.00
Expected and Actual Fixed Overhead 468000.00
Total Manufacturing Cost $ 1,476,000.00
/Units Produced 90000.00
Total Unit Cost $ 16.40

Cost of Finished Goods Inventory $ 49,200.00

(16.40*3000)

3. The dollar amount that would be used to report the cost of finished goods inventory to external parties is
because the absorption costing is required for external financial reporting
 2. VARIABLE COSTING

Direct Materials $ 540,000.00

Direct Labor 99000.00
Expected and Actual Variable Overhead 369000.00
Total Manufacturing Cost $ 1,008,000.00
/Units Produced 90000.00
Total Unit Cost $ 11.20

Cost of Finished Goods Inventory $ 33,600.00

(11.20*3000)

ost of finished goods inventory to external parties is $49200

financial reporting