Perez Manufacturing Company began operations on January 1. During the year, it s

Question

Perez Manufacturing Company began operations on January 1. During the year, it started and completed 1610 units of product. The financial statements are prepared in accordance with GAAP. The company incurred the following costs: 1. Raw materials purchased and used-$3,230 2. Wages of production workers-$3.620 3. Salaries of administrative and sales personnel $1,970 4. Depreciation on manufacturing equipment-$4,903. 5. Depreciation on administrative equipment-$1,760. Perez sold 1,150 units of product Required a. Determine the total product cost for the year b. Determine the total cost of the ending inventory. (Do not round intermediate calculations.) c. Determine the total of cost of goods sold. (Do not round intermediate calculations.) a. Total product cost b. Total cost of ending inventory c Total cost of goods sold

Explanation / Answer

a Total product cost = 3230+3620+4903= $11753 b Total cost of ending inventory = 11753/1610*460= $3358 c Total cost of goods sold = 11753/1610*1150= $8395

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.