Question

Swansea Finishing produces and sells a decorative pillow for $100.00 per unit. In the first month of operation, 2,000 units were produced and 1,800 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 $5.00 per unit Fixed manufacturing costs $13 per unit Administrative expenses, all fixed $19.50 per unit Ending inventories: Direct materials -0- WIP -0- Finished goods 200 units What is cost of goods sold using variable costing?

Answer 1

$41,400

Step-by-step explanation:

Swansea Finishing

Variable cost of goods sold = Variable manufacturing costs × Units Sold

Variable manufacturing costs $23.00

Units sold $1,800

Hence:

$23.00 × 1,800 units

= $41,400

Therefore the cost of goods sold using variable costing is $41,400