Which of the following equations is used to calculate the cost of goods sold dur

Question

Which of the following equations is used to calculate the cost of goods sold during the period?

                  A.      Beginning finished goods + cost of goods manufactured + ending finished goods.

                  B.      Beginning finished goods - ending finished goods.

                  C.      Beginning finished goods + cost of goods manufactured.

                  D.      Beginning finished goods + cost of goods manufactured - ending finished goods.

                  E.      Beginning finished goods + ending finished goods - cost of goods manufactured.

Which of the following equations is used to calculate the cost of goods sold during the period? Beginning finished goods + cost of goods manufactured + ending finished goods. Beginning finished goods ending finished goods. Beginning finished goods + cost of goods manufactured. Beginning finished goods + cost of goods manufactured ending finished goods. Beginning finished goods + ending finished goods cost of goods manufactured. General Cookware produces stainless steel pots in an assembly-line process. Labor costs incurred during a recent period were: corporate executives, $100,000; assembly-line workers, $80,000; security guards, $18,000; and plant supervisor, $30,000. The total of General Cookware's direct labor cost was: The accounting records of McCormick Company revealed the following costs: Costs that would be considered in the calculation of manufacturing overhead total: Using the following data for April, calculate the cost of goods manufactured: At a volume of 15,000 units, Riley Company reported sales revenues of $600,000, variable costs of $225,000, and fixed costs of $120,000. The company's contribution margin ratio is:

Explanation / Answer

Hi,

Please find the answers as follows:

Part A:

Beginning finished goods + cost of goods manufactured - ending finished goods is the correct answer.

Part B:

80000 is the correct answer.

Part C:

Manufacturing overhead total = 34000 + 125000 + 18000 + 90000 = 267000

Part D:

Cost of Goods Manufactured = 39000 + 19000 + 27000 + 14000 - 12000 = 87000

Part E:

Contribution Ratio = (600000 - 225000)/600000*100 = 62.5%

Part F:

Break Even Point = (1000000)/(3600000 - 1600000)/3600000 = 1800000/360 = 5000 Units

Part G:

Break Even Sales = 120000/(20 -8) = 10000*20 = 200000

Thanks.

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