Information Taken from Giles Corporation's May Accounting Records Follows Required:
A

Essay

Information taken from Giles Corporation's May accounting records follows. $$\begin{array} { l r } \text { Direct materials used } & \$ 150,000 \\\text { Direct labor } & 80,000 \\\text { Variable manufacturing overhead } & 30,000 \\\text { Fixed manufacturing overhead } & 100,000 \\\text { Variable selling and administrative costs } & 51,000 \\\text { Fixed selling and administrative costs } & 60,000 \\\text { Sales revenues } & 625,000\end{array}$$
Required:
A. Assuming the use of variable costing, compute the inventoriable costs for the month.
B. Compute the month's inventoriable costs by using absorption costing.
C. Assume that anticipated and actual production totaled 20,000 units, and that 18,000 units were sold during May. Determine the amount of fixed manufacturing overhead and fixed selling and administrative costs that would be expensed for the month under (1) variable costing and (2) absorption costing.
D. Assume the same data as in requirement "C." Compute the contribution margin that would be reported on a variable-costing income statement.