Information taken from Collegiate Sporting Goods Company's records for the most recent year is as follows:
Direct material used $272,000
Direct labor $128,000
Variable manufacturing overhead $60,000
Fixed manufacturing overhead $100,000
Variable selling and administrative costs $56,000
Fixed selling and administrative costs $29,600
1. Assuming the company uses absorption costing, compute the inventoriable costs for the year.
2. Compute the year's inventoriable costs using variable costing.
The solution computes the year's inventoriable costs using variable costing.