ESS AY. Write your answer in the space provided or on a separate sheet of paper.

Question

ESS AY. Write your answer in the space provided or on a separate sheet of paper. 1) Jarvis Company provided the following information regarding its first year of operations: Administrative salaries Depreciation on factory equipment Indirect materials Marketing costs Salaries for factory supervisors Wages for production workers Raw materials used Researeh and development Rent on factory building Sales revenues Sales salaries and other selling costs S 60,000 16,000 4,000 40,000 28,000 80,000 100,000 32,000 18,000 432,000 56,000 Beginning inventory 0 units Number of units produced Number of units sold 20,000 18,000 Required: Determine the following amounts: (a) Total overhead costs. (b) Total product costs. (c) Product cost per unit. (d) Total cost of ending finished goods inventory. (e) Total cost of goods sold.

Explanation / Answer

a) Total overhead cost :

b) Total product cost :

c) Product cost per unit = 246000/20000 = 12.30 per unit

d) Cost of ending finished goods inventory (2000*12.30) = 24600

e) Cost of goods sold (18000*12.30) = 221400

Depreciation on factory equipment 16000 Indirect material 4000 Salaries for factory supervisor 28000 Rent on factory building 18000 Total overhead cost 66000

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

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