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uses variable costing, what will be reported as cost of goods sold?

uses variable costing, what will be reported as cost of goods sold?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cheyenne sells its product for $79 per unit. During 2025, it produced 120500 units and sold 105500 units. Costs per unit are: direct materials $25, direct labor $9, variable overhead $4, and variable operating expenses $2. Fixed costs are $723000 manufacturing overhead, and $74700 operating expenses. Assuming no variances were reported, no beginning inventory exists, and the company uses variable costing, what will be reported as cost of goods sold? O $4642000. O $4579000. O $5302000. O $4009000.
Transcribed Image Text:Cheyenne sells its product for $79 per unit. During 2025, it produced 120500 units and sold 105500 units. Costs per unit are: direct materials $25, direct labor $9, variable overhead $4, and variable operating expenses $2. Fixed costs are $723000 manufacturing overhead, and $74700 operating expenses. Assuming no variances were reported, no beginning inventory exists, and the company uses variable costing, what will be reported as cost of goods sold? O $4642000. O $4579000. O $5302000. O $4009000.
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