The budgeted finished goods inventory and cost of goods sold for a manufacturing company for the year are as follows: January 1 finished goods, $765,000; December 31 finished goods, $540,000; and cost of goods sold for the year, $2,560,000.
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Cardinal uses the high-low method of estimating costs. Cardinal had total costs of $26,410 at its lowest level of activity, when 10,000 units were sold. When, at its highest level of activity, sales equaled 15,900 units, total costs were $39,390.
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