Ollie's Olive Oil began business in 2010, during which it produced 104,000 quarts of olive oil. In 2010, the company sold 100,000 quarts of olive oil. Costs incurred during the year were as follows:
Ingredients used .......................................$228,800
Direct labor ............................................. 104,000
Variable overhead ..................................... 197,600
Fixed overhead ......................................... 98,800
Variable selling expenses ............................. 50,000
Fixed selling and administrative expenses ......... 120,000
Total actual costs ......................................$799,200
a. What was the actual production cost per quart under variable costing? Under absorption costing?
b. What was variable cost of goods sold for 2010 under variable costing?
c. What was cost of goods sold for 2010 under absorption costing?
d. What was the value of ending inventory under variable costing? Under absorption costing?
e. How much fixed overhead was charged to expense in 2010 under variable costing? Under absorption costing?