Information taken from Tuscarora Paper Company's records for the most recent year is as follows:
Direct material used $290,000
Direct labor 100,000
Variable manufacturing overhead 50,000
Fixed manufacturing overhead 80,000
Variable selling and administrative costs 40,000
Fixed selling and administrative costs 20,000
Required:
Question 1. Assuming Tuscarora Paper Company uses variable costing, compute the inventoriable costs for the year
Question 2. Compute the year's inventoriable costs using absorption costing.
Question 3. Now assume that Tuscarora Paper Company uses throughput costing, and the company has committed to spending for direct labor, variable overhead, and fixed overhead in the amounts given in the problem. Under this scenario, compute the company's inventoriable costs for the year.