Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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!

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

Evaluate the limit. lim (xx)e2x x110

Answered: 1 week ago