Information taken from Tuscarora Paper Company\'s records for the most recent ye
ID: 2588678 • Letter: I
Question
Information taken from Tuscarora Paper Company's records for the most recent year is as follows: Direct material used Direct labor Variable manufacturing overheacd Fixed manufacturing overhead Variable selling and administrative costs Fixed selling and administrative costs $290,000 100,000 50,000 80,000 40,000 20,000 Book Required: Print 1. Assuming Tuscarora Paper Company uses variable costing, compute the inventoriable costs for the year. 2. Compute the year's inventoriable costs using absorption costing. ferences Inventoriable costs 1. Variable costing 2. Absorption costing Reference linksExplanation / Answer
1. Variable costing
2)
Fixed manufacturing cost will not cosider as product cost under variable costing
Direct material used $ 150,000 Direct labour $ 80,000 Variable manufacturing overhead $ 30,000 Total $ 260,000