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I need to know how to get cost of goods sold I dont need the answer, I just need to know how to do it.
I need to know how to get "cost of goods sold" I dont need the answer, I just need to know how to do it. Thank you
Data | ||
Selling price per unit | $50 | |
Manufacturing costs: | ||
Variable per unit produced: | ||
Direct materials | $11 | |
Direct labor | $6 | |
Variable manufacturing overhead | $3 | |
Fixed manufacturing overhead per year | $120,000 | |
Selling and administrative expenses: | ||
Variable per unit sold | $4 | |
Fixed per year | $70,000 | |
Year 1 | Year 2 | |
Units in beginning inventory | 0 | 2,000 |
Units produced during the year | 10,000 | 6,000 |
Units sold during the year | 8,000 | 8,000 |
Enter a formula into each of the cells marked with a ? below | ||
Review Problem 1: Contrasting Variable and Absorption Costing | ||
Compute the Ending Inventory | ||
Year 1 | Year 2 | |
Units in beginning inventory | 0 | 2,000 |
Units produced during the year | 10,000 | 6,000 |
Units sold during the year | 8,000 | 8,000 |
Units in ending inventory | 2,000 | 0 |
Compute the Absorption Costing Unit Product Cost | ||
Year 1 | Year 2 | |
Direct materials | $11 | $11 |
Direct labor | 6 | 6 |
Variable manufacturing overhead | 3 | 3 |
Fixed manufacturing overhead | 12 | 20 |
Absorption costing unit product cost | $32 | $40 |
Construct the Absorption Costing Income Statement | ||
Year 1 | Year 2 | |
Sales | $ 400,000 | $ 400,000 |
Cost of goods sold | ? | ? |
Gross margin | #VALUE! | #VALUE! |
Selling and administrative expenses | 102,000 | 102,000 |
Net operating income | #VALUE! | #VALUE! |
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