Vaughn manufacturing sells its product for $90 per unit. during 2019, it produced 6 units and sold 5 units (there was no beginning inventory). costs per unit are: direct materials $24, direct labor $14, and variable overhead $3. fixed costs are: $72 manufacturing overhead, and $9 selling and administrative expenses. cost of goods sold under absorption costing is

Inventory= $530,000

Explanation:

Giving the following information:

Vaughn Manufacturing sells its product for $90 per unit. During 2019, it produced 60000 units and sold 50000 units (there was no beginning inventory).

Costs per unit:

direct materials $24

direct labor $14

variable overhead $3.

Fixed costs are:

$720000 manufacturing overhead

Manufacturing cost under absorption costing= direct material + direct labor + variable manufacturing overhead + fixed manufacturing overhead

Manufacturing cost under absorption costing= 24* 60,000 + 14*60,000 + 3*60,000 + 720,000= $3,180,000

Unitary cost= 3,180,000/60,000= $53

Inventory= 53*10,000= $530,000

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explanation:

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