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AAA Plumbing Co. incurred the following costs during August: Raw materials 90,000 Direct labor 230,000 112,000 Manufacturing overhead Selling expenses 70,800 Administrative expenses 45,200 Interest
AAA Plumbing Co. incurred the following costs during August: Raw materials 90,000 Direct labor 230,000 112,000 Manufacturing overhead Selling expenses 70,800 Administrative expenses 45,200 Interest expense 25,000 During the month, 9,000 units of product were manufactured and 8,500 units of product were sold. On August 1, AAA Plumbing carried no inventories. (Total 7 Marks) Required: a) Calculate the cost of goods manufactured during August and the average cost per unit of product manufactured. (present all of your calculations) (5 Marks) b) Calculate the cost of goods sold during August. (present all of your calculations) (2 Marks)
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