Coastal Corporation, Which Uses Throughput Costing, Began Operations at the Start

Essay

Coastal Corporation, which uses throughput costing, began operations at the start of the current year. Planned and actual production equaled 20,000 units, and sales totaled 17,500 units at $95 per unit. Cost data for the year were as follows: $\begin{array} { | l | r | } \hline \text { Direct materials (per unit) } & \text { \$ } 18 \\\hline \text { Conversion cost: } & \\\hline \text { Direct labor } & 160,000 \\\hline \text { Variable manufacturing overhead } & 280,000 \\\hline \text { Fixed manufacturing overhead } & 340,000 \\\hline \text { Selling and administrative costs (total) } & 430,000 \\\hline\end{array}$ The company classifies direct materials as a throughput cost.
Required:
A. Compute Coastal Corporation's total cost for the year.
B. How much of this cost would be held in year-end inventory under (1) absorption costing, (2) variable costing, and (3) throughput costing?
C. How much of Coastal Corporation's total cost for the year would appear on the period's income statement under (1) absorption costing, (2) variable costing, and (3) throughput costing?
D. Compute the year's throughput-costing net income.