The company uses absorption costing system. The company produces 4,500 units. The variable costs are $617...
The company uses absorption costing system. The company produces 4,500 units. The variable costs are $617 per unit. Total fixed costs are $225,100 per period. What is the amount of cost of goods manufactured?
| A. |
$2,776,500 |
|
| B. |
$3,001,600 |
|
| C. |
$225,100 |
|
| D. |
$100,000 |
Homework Answers
Answer:B.$3,001,600
Absorption costing includes both Manufacturing Variable and Manufacturing Fixed costs:
Therefore the amount of cost of goods sold = 4500 units x $617 + $225100 = $3001600
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The company uses absorption costing system. The company produces
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