For 2018,Baggy Green Caps Inc Required:
A

Essay

For 2018,Baggy Green Caps Inc. ,had sales of 75 000 units and production of 100 000 units.Other information for the year included:
$\begin{array}{l}\begin{array}{lr}\text { Direct manufacturing labour } & \$ 187500 \\\text { Variable manufacturing overhead } & 100000 \\\text { Direct materials } & 150000 \\\text { Variable selling expenses } & 100000 \\\text { Fixed administrative expenses } & 100000 \\\text { Fixed manufacturing overhead } & 200000\end{array}\\\text { There was no beginning inventory. }\end{array}$
Required:
a.Compute the ending finished goods inventory under both absorption and variable costing.
b.Compute the cost of goods sold under both absorption and variable costing.
_____________________________________________________________________________________________
_____________________________________________________________________________________________