uses variable costing, what will be reported as cost of goods sold?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter17: Activity Resource Usage Model And Tactical Decision Making
Section: Chapter Questions
Problem 18E: A company is considering a special order for 1,000 units to be priced at 8.90 (the normal price...
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Cheyenne sells its product for $79 per unit. During 2025, it produced 120500 units and sold 105500 units. Costs per unit are: direct
materials $25, direct labor $9, variable overhead $4, and variable operating expenses $2. Fixed costs are $723000 manufacturing
overhead, and $74700 operating expenses. Assuming no variances were reported, no beginning inventory exists, and the company
uses variable costing, what will be reported as cost of goods sold?
O $4642000.
O $4579000.
O $5302000.
O $4009000.
Transcribed Image Text:Cheyenne sells its product for $79 per unit. During 2025, it produced 120500 units and sold 105500 units. Costs per unit are: direct materials $25, direct labor $9, variable overhead $4, and variable operating expenses $2. Fixed costs are $723000 manufacturing overhead, and $74700 operating expenses. Assuming no variances were reported, no beginning inventory exists, and the company uses variable costing, what will be reported as cost of goods sold? O $4642000. O $4579000. O $5302000. O $4009000.
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