Year 1 financial data for the ABC Company is as follows: Sales........................................................................$5,000,000 Direct materials...........................................................850,000 Direct manufacturing labor....................................1,700,000
Question:
Year 1 financial data for the ABC Company is as follows:
Sales........................................................................$5,000,000
Direct materials...........................................................850,000
Direct manufacturing labor....................................1,700,000
Variable manufacturing overhead............................400,000
Fixed manufacturing overhead.................................750,000
Variable SG&A.............................................................150,000
Fixed SG&A..................................................................250,000
Under the absorption method, Year 1 Cost of Goods sold will be:
a. $2,550,000
b. $2,950,000
c. $3,100,000
d. $3,700,000
Step by Step Answer:
Choice d is correct Under the absorption method Cost of G...View the full answer
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 978-0134475585
16th edition
Authors: Srikant M. Datar, Madhav V. Rajan
