Part 1

Year 1 financial data for the

CBA

Company is as follows:

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Under the absorption method, Year 1 cost of goods sold will be

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Part 1

A.

$2,550,000

B.

$3,450,000

C.

$2,900,000

D.

$3,100,000

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Year 1 financial data

Sales	$4,400,000
Direct materials	650,000
Direct manufacturing labor	1,900,000
Variable manufacturing overhead	350,000
Fixed manufacturing overhead	550,000
Variable SG&A	200,000
Fixed SG&A	300,000