eBook

Cost of Goods Manufactured

Bob's Bistro produces party$-$sized hoagie sandwiches. For next year, Bob's Bistro predicts that $50,000$ units will be produced with the following total costs:

Direct materials $?$

Direct labor

$$55,000$

Variable overhead

$16,000$

Fixed overhead

$225,000$

Next year, Bob's Bistro expects to purchase $$127,000$ of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows:

$\backslash$table$[[,\backslash$table$[[$Direct materials$],[$Inventory$]],\backslash$table$[[$Work$-$in$-$Process$],[$Inventory$]]],[$Beginning$,$$$6,000,$$$10,700$