Schultz Company reported the following information about the production and sales of its only product:

-The cost of goods sold under absorption costing would be
A) $112,000.
B) $126,000.
C) $ 89,600.
D) $ 72,800.

Question

Schultz Company reported the following information about the production and sales of its only product:
 
-The cost of goods sold under absorption costing would be
A) $112,000. 
B) $126,000. 
C) $ 89,600. 
D) $ 72,800.

Quizplus · Accepted Answer

Under absorption costing, the cost of goods sold includes all manufacturing costs: direct materials, direct labor, and both variable and fixed manufacturing overhead. The correct choice is $112,000, which likely includes these components.

Schultz Company Reported the Following Information About the Production and Sales