Question

Beginning inventory in units 0 Units produced 4,800 Units sold 4,000 Sales $400,000 Material cost (unit level or variable) $96,000 Variable conversion cost used (Committed) $48,000 Facility-level or fixed manufacturing cost $72,000 Indirect operating costs (fixed) $80,000 The variable cost of goods sold is:

Answer 1

Variable Unit Cost $36

Variable Cost of good sold $144,000

Step-by-step explanation:

Direct Materials 96,000

Variable Labor and Overhead 48,000

Total Variable cost 144,000

Units 4,000

144,000 / 4,000 = $36

The fixed cost will not be considered part of the variable cost of goods sold, so we ignore it from the calculation.