Question
In July B&B Company purchased materials costing $23,100 and incurred direct labor cost of $19,800. Manufacturing overhead totaled $35,200 for the month. Information on inventories
In July B&B Company purchased materials costing $23,100 and incurred direct labor cost of $19,800. Manufacturing overhead totaled $35,200 for the month. Information on inventories was as follows:
July 1 | July 31 | |
Materials | $6,820 | $8,000 |
Work in process | 800 | 1,320 |
Finished goods | 3,630 | 2,970 |
If B&B Company sold 10,300 units during July and its gross margin totaled $32,780, what was the Cost of Goods Sold for July 31?
| a. | $69,500 | ||||||||||||||||||||||||||||||||||||||||||||
| b. | $70,400 | ||||||||||||||||||||||||||||||||||||||||||||
| c. | $76,400 | ||||||||||||||||||||||||||||||||||||||||||||
| *d. | $77,060 | ||||||||||||||||||||||||||||||||||||||||||||
RATIONALE: | SUPPORTING CALCULATIONS:
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