Abigail Corporation produces widgets. In 2008, its first year of operations, the company produced 100,000 widgets and sold 90,000 widgets. The selling price is $70 per widget.

The production costs are
Direct Materials $10 per widget
Direct Labor $5 per widget
Variable Manufacturing Overhead $12 per widget
Fixed Manufacturing Overhead $600,000 in total

The company also had fixed selling costs of $100,000 and fixed administration costs of $150,000

Answer the following questions:


What is the cost of goods sold using the full costing method?33x90,000=2970000

What is the variable cost of goods sold? $27x90,000= 2,430,000

What is the dollar value of the widget inventory at the end of the year using full costing?$330000

What is the dollar value of the widget inventory at the end of the year using variable costing?
$270,000