ocr: Manufacturing Cost of Sales VC= 595,000 In scenario three, production (30,000 units) falls short of sales (35,000 units) by 5,000 units. This means that the company must use some opening stock to satisty its customer demand. Theretore: Cost ppening costs of closing of stock production stock Sales (5,000 (30,000 units" - - £17) (E0) units V £17) E85K + E510K. -: EOK - L595K These variable manufacturing costs are shown separately from the non-manufacturing variable costsi in order that closing stock valuations can be more easily derived.
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