Peggy\'s Pillows produces and sells a decorative pillow for$75.00 per unit. In t
ID: 2433877 • Letter: P
Question
Peggy's Pillows produces and sells a decorative pillow for$75.00 per unit. In the first month of operation, 2,000 units wereproduced and 1,750 units were sold. Actual fixed costs are the sameas the amount budgeted for the month. Other information for themonth includes:
Variable manufacturing costs $20.00 per unit
Variable marketingcosts $ 3.00per unit
Fixed manufacturing costs $ 7.00per unit
Administrative expenses, all fixed $15.00 per unit
Ending inventories:
Directmaterials -0-
WIP -0-
Finishedgoods 250 units
What is cost of goods sold per unit using variablecosting?
What is cost of goods sold using variablecosting?
Explanation / Answer
2,000 x $20
$40,000
250 x $20
$5,000
$35,000
Cost of Goods Sold Variable Manufacturing cost 1,750 x $20 $35,000Related Questions
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