Answer:
Results are below.
Explanation:
Giving the following information:
Direct materials $14.50 per unit
Direct labor $15.50 per unit
Variable overhead $280,350 per year
Units produced this year 26,700 units
Units sold this year 20,500 units
Ending finished goods inventory in units 6,200 units
<u>The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).</u>
Unitary variable overhead= 280,350/26,700= $10.5
Unitary variable cost= 14.5 + 15.5 + 10.5= $40.5
Ending finished inventory cost= 6,200*40.5= $251,100
COGS= 20,500*40.5= $830,250