Hi-Tech manufactures basic cell phones for cell phone service providers. Data for March and April's production follows:
Hi-Tech started March with 1,000 cell phones that had variable costs of $28.00 per phone and fixed manufacturing costs of $2.00 per phone. Hi-Tech uses a FIFO cost flow.
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What is the Cost of Goods Sold for March, 2012 using variable costing?
A) $1,320,000
B) $1,240,000
C) $1,317,000
D) $1,237,000

Question

Hi-Tech manufactures basic cell phones for cell phone service providers. Data for March and April's production follows:
 Hi-Tech started March with 1,000 cell phones that had variable costs of $28.00 per phone and fixed manufacturing costs of $2.00 per phone. Hi-Tech uses a FIFO cost flow.
-
What is the Cost of Goods Sold for March, 2012 using variable costing?
A) $1,320,000 
B) $1,240,000 
C) $1,317,000 
D) $1,237,000

Quizplus · Accepted Answer

The Answer of Hi-Tech manufactures basic cell phones for cell phone service providers. Data for March and April's production follows:
 Hi-Tech started March with 1,000 cell phones that had variable costs of $28.00 per phone and fixed manufacturing costs of $2.00 per phone. Hi-Tech uses a FIFO cost flow.
-
What is the Cost of Goods Sold for March, 2012 using variable costing?
A) $1,320,000 
B) $1,240,000 
C) $1,317,000 
D) $1,237,000

Hi-Tech Manufactures Basic Cell Phones for Cell Phone Service Providers