Question

Pearls, Pearls, Pearls! manufactures and sells jewelry. The total variable cost of goods sold this month is $72,490. Variable selling and administrative cost is $22 per unit sold. If 350 units are produced and 314 units are sold this month, the total variable cost reported on the income statementforthe month is $:___________

Answer 1

Answer:

Total variable cost= $71,940.54

Explanation:

Giving the following information:

The total variable cost of goods sold this month is $72,490.

Variable selling and administrative cost is $22 per unit sold.

350 units are produced and 314 units are sold this month.

First, we need to calculate the unitary variable cost per unit:

Unitary production cost= 72,490/350= $207.11

Now, we can calculate the total variable cost:

Total variable cost= (207.11 + 22)*314= $71,940.54