Question

Swansea Finishing produces and sells a decorative pillow for $ 104.00 per unit. In the first month of​ operation, 2 comma 300 units were produced and 1 comma 750 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month​ includes: Variable manufacturing costs $ 23.00 per unit Variable marketing costs $ 4.00 per unit Fixed manufacturing costs $ 13.00 per unit Administrative​ expenses, all fixed $ 21.00 per unit Ending​ inventories: Direct materials minus0minus WIP minus0minus Finished goods 550 units What is cost of goods sold per unit using variable​ costing?

Answer 1

Total variable cost (COGS)= $47,250

Step-by-step explanation:

Giving the following information:

Production= 2,300 units

Units sold= 1,750 units

Variable manufacturing costs= $23 per unit

Variable marketing costs= $4 per unit

Under the variable costing method, the cost of goods sold is calculated using all the variable components, and its called Variable Costs.

Unitary variable cost= 23 + 4= $27

Total variable cost (COGS)= 27*1,750 units= $47,250

Sales= 1,750*104= 182,000

Total variable cost= (47,250)

Contribution margin= 134,750