Zaria Inc. provides the following cost information for producing 10,000 units of inventory during the current month:Cost InformationAccountsAmountsDirect materials costs$30,000Direct labor costs55,000Variable manufacturing overhead costs20,000Fixed manufacturing overhead costs25,000Variable Selling and Administrative expenses15,000Fixed Selling and Administrative expenses10,000There was no inventory at the beginning of the period. If 1,500 units of inventory remain unsold at the end of the period, compute the costs of goods sold for the month under variable costing.Group of answer choices$89,250$110,500$15,750$19,500

The objective of the question is to calculate the cost of goods sold (COGS) under variable costing…

Answered: Zaria Inc. provides the following cost…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 3CE: Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month...

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Question

Zaria Inc. provides the following cost information for producing 10,000 units of inventory during the current month:

Cost Information

Accounts	Amounts
Direct materials costs	$30,000
Direct labor costs	55,000
Variable manufacturing overhead costs	20,000
Fixed manufacturing overhead costs	25,000
Variable Selling and Administrative expenses	15,000
Fixed Selling and Administrative expenses	10,000

There was no inventory at the beginning of the period. If 1,500 units of inventory remain unsold at the end of the period, compute the costs of goods sold for the month under variable costing.

Group of answer choices

$89,250

$110,500

$15,750

$19,500

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