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Information taken from Giles Corporation's May accounting records follows. Required: Direct materials used $280,000 Direct...

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Accounting

Information taken from Giles Corporation's May accounting records follows.

Required:

Direct materials used $280,000 Direct labor 70,000 Variable manufacturing overhead 50,000 Fixed manufacturing overhead 160,000 Variable selling and administrative costs 71,000 Fixed selling and administrative costs 80,000 Sales revenue 725,000

A. Assuming the use of variable costing, compute the inventoriable costs for the month.

B. Compute the month's inventoriable costs by using absorption costing.

C. Assume that anticipated and actual production totaled 40,000 units, and that 28,000 units were sold during May. Determine the amount of fixed manufacturing overhead and fixed selling and administrative costs that would be expensed for the month under (1) variable costing and (2) absorption costing.

D. Assume the same data as in requirement "C." Compute the contribution margin that would be reported on a variable-costing income statement.

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