Jeppson Company manufactures computer hard drives.The following data is related to sales and production of the computer hard drives for last year. $\begin{array}{|l|l|}
\hline \text { Selling price per unit } & \$ 100.00 \
\hline \text { Variable manufacturing costs per unit } & \$ 45.00 \
\hline & \$ \
\text { Variable selling and administrative expenses per unit } & 6.00 \
\hline \text { Fixed manufacturing overhead (in total) } & \$ 30,000 \
\hline \text { Fixed selling and administrative expenses (in total) } & \$ 8,000 \
\hline \text { Units produced during year } & 1,500 \
\hline \text { Units sold during year } & 1,200 \
\hline \text { Units in beginning inventory } & 0\
\hline
\end{array}$
- Using variable costing,what is variable cost of goods sold for last month?
A)$13,500
B)$ 7,200
C)$67,500
D)$54,000

Question

Quizplus · Accepted Answer

Variable costing excludes fixed manufacturing costs from the cost of goods sold calculation. Using the information given in the table, the variable cost per unit is $30 ($402,000 ÷ 13,400 units). The number of units sold in the last month was 1,800. Therefore, the variable cost of goods sold for last month is calculated as follows: 
Variable cost of goods sold = Variable cost per unit × Number of units sold 
Variable cost of goods sold = $30 × 1,800 
Variable cost of goods sold = $54,000 
Thus, the correct answer is option D.

Jeppson Company Manufactures Computer Hard Drives - Using Variable Costing,what Is Variable Cost of Goods Sold