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28 November, 19:54

Beginning inventory in units 0 Units produced 4,800 Units sold 4,000 Sales $400,000 Material cost (unit level or variable) $96,000 Variable conversion cost used (Committed) $48,000 Facility-level or fixed manufacturing cost $72,000 Indirect operating costs (fixed) $80,000 The variable cost of goods sold is:

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  1. 28 November, 20:13
    0
    Variable Unit Cost $36

    Variable Cost of good sold $144,000

    Explanation:

    Direct Materials 96,000

    Variable Labor and Overhead 48,000

    Total Variable cost 144,000

    Units 4,000

    144,000 / 4,000 = $36

    The fixed cost will not be considered part of the variable cost of goods sold, so we ignore it from the calculation.
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