***Please type out the answer. Compute total cost of goods sold under absorption
ID: 2433084 • Letter: #
Question
***Please type out the answer.
Compute total cost of goods sold under absorption costing based on the following data.
Unit cost for direct materials $10
Unit cost for direct labor 15
Unit cost for variable manufacturing overhead 7
Unit variable selling and administrative expense 3
Total fixed manufacturing overhead $100,000
Total fixed selling and administrative expense 82,000
Units in beginning inventory 0
Units produced 25,000
Units sold 22,000
Unit selling price $70
Explanation / Answer
Calculate total cost of goods sold under absorption costing :
Cost of goods sold under absorption costing = $792000
Direct material 10 Direct labour 15 variable manufacturing overhead 7 Fixed manufacturing overhead (100000/25000) 4 Unit product cost 36 Unit sold 22000 Cost of goods sold 792000Related Questions
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