QUESTION 13 Swansea Finishing produces and sells a decorative pillow for $100.00

Question

QUESTION 13 Swansea Finishing produces and sells a decorative pillow for $100.00 per unit In the first month of operation, 2,000 units were produced and 1,800 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for thee month includes Variable manufacturing costs $23.00 per unit Variable marketing costs $5.00 per unit Fixed manufacturing costs $13 per unit Administrative expenses, all fixed $19.50 per unit Ending inventories Direct materials-0 WIP-0 Finished goods 200 units What is cost of goods sold using variable costing? $56,000 O $73,800 $41,400 $121,000

Explanation / Answer

C. $41,400

Cost of goods sold using variable costing = $23.00 * 1,800 units

Cost of goods sold using variable costing = $41,400

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