Allocating product costs between ending inventory and cost of goods sold Kawa Manufacturing Company began operations on

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Allocating product costs between ending inventory and cost of goods sold Kawa Manufacturing Company began operations on January 1. During January, it started and completed 2,000 units of product. The company incurred the following costs:

1. Raw materials purchased and used—$2,500.

2. Wages of production workers—$2,000.

3. Salaries of administrative and sales personnel—$1,000.

4. Depreciation on manufacturing equipment—$1,500.

5. Depreciation on administrative equipment—$1,200.

Kawa sold 1,600 units of product.

Required

a. Determine the total product cost.

b. Determine the total cost of the ending inventory.

c. Determine the total of cost of goods sold.

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Fundamental Managerial Accounting Concepts

ISBN: 9780073526799

4th Edition

Authors: Thomas Edmonds, Bor-Yi Tsay, Philip Olds

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