Question
Molten Metals, Inc. started operations in 2020. It uses an actual manufacturing overhead rate based on direct labor hours to apply its indirect product costs
Molten Metals, Inc. started operations in 2020. It uses an actual manufacturing overhead rate based on direct labor hours to apply its indirect product costs to jobs. The following information has been collected for 2020: Direct materials - $165,000; Direct labor - $195,000; Sales commissions - $105,000; Indirect labor - $55,000; Rent on office equipment - $25,000; Depreciation factory building - $85,000; Utilities factory - $115,000. Molten Metals used 10,000 direct labor hours and 20,000 machine hours. Assume there are no beginning or ending Work in Process inventory. If 6,000 units of a single product were manufactured in 2020 and 5,000 units were sold, what is the Cost of Goods Sold? (Round to the nearest dollar.)
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