Information taken from Allied Pipe Company’s records for the most recent year is as follows: Direct material used .....................................................................................$340,000Direct labor ........................................................................................................160,000Variable manufacturing overhead ............................................................. 75,000Fixed manufacturing overhead ................................................................. 125,000Variable selling and administrative costs ............................................. 70,000Fixed selling and administrative costs .................................................... 37,000 Required:1. Assuming Allied Pipe Company uses absorption costing, compute the inventoriable costs for the year.2. Compute the year’s inventoriable costs using variable costing.
Information taken from Allied Pipe Company’s records for the most recent year is as follows:
Direct material used .....................................................................................$340,000
Direct labor ........................................................................................................160,000
Variable manufacturing
Fixed manufacturing overhead ................................................................. 125,000
Variable selling and administrative costs ............................................. 70,000
Fixed selling and administrative costs .................................................... 37,000
Required:
1. Assuming Allied Pipe Company uses absorption costing, compute the inventoriable costs for the year.
2. Compute the year’s inventoriable costs using variable costing.
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