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View Full Version : Expensed Period Costs under Variable Costing


pauldata
Oct 24, 2015, 11:35 AM
I'm not sure how to expense period costs for the month under variable costing.

I know that under variable costing, period costs would be: fixed manufacturing overhead + variable selling and administration + fixed selling and administration.

but how can I calculate a months worth of expense with the data I've been given?

Units:
Beginning Invetory: 0
Sold: 800
Produced: 1,100
Ending Inventory: 300

Variable Costs per Unit:
Variable Selling and Administration: $48

Fixed Costs:
Fixed Manufacturing Overhead: $39,600
Fixed Selling and Administration: $7,200


what I've come up with so far is that you take units sold and multiply it by variable selling and administration plus all the fixed cost. Is that right?