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Tuscarora Paper: Inventoriable cost under variable and absorption

Information taken from Tuscarora Paper Company's records for the most recent year is as follows:

Direct material used $ 290,000
Direct labor 100,000
Variable manufacturing overhead 50,000
Fixed manufacturing overhead 80,000
Variable selling and administrative costs 40,000
Fixed selling and administrative costs 20,000

Required:
1. Assuming Tuscarora Paper Company uses variable costing, compute the inventoriable costs for the year

Inventoriable cost $

2. Compute the year's inventoriable costs using absorption costing.

Inventoriable cost $

3. Now assume that Tuscarora Paper Company uses throughput costing, and the company has committed to spending for direct labor, variable overhead, and fixed overhead in the amounts given in the problem. Under this scenario, compute the company's inventoriable costs for the year.

Inventoriable cost $

Solution Preview

See attached Excel file for format and formulas.

Direct material used $ 290,000
Direct labor 100,000
Variable manufacturing overhead 50,000
Fixed manufacturing ...

Solution Summary

Inventoriable cost under variable and absorption for Tuscarora Paper Company.

$2.19