Explore BrainMass

Explore BrainMass

    Tuscarora Paper: Inventoriable cost under variable and absorption

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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 $

    © BrainMass Inc. brainmass.com November 30, 2021, 5:14 am ad1c9bdddf
    https://brainmass.com/business/accounting/tuscarora-paper-inventoriable-cost-under-variable-absorption-438607

    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.

    $2.49

    ADVERTISEMENT