A firm uses backflush costing on a direct costing basis. It incurs the following costs this period (the firm has NO fixed overhead costs). • Direct materials costs: $20,000 Direct labor costs: $20,000 Variable overhead costs: $10,000 The firm's total units (completed and in process) is 1,839. The firm has 45 units in process and 96 unsold units in finished goods. The firm has $339 of unused raw materials left over at the end of the period. What is the balance of the Cost of Goods Sold account AFTER the firm backflushes costs to inventory accounts (round final answer to nearest cent if necessary)?
A firm uses backflush costing on a direct costing basis. It incurs the following costs this period (the firm has NO fixed overhead costs). • Direct materials costs: $20,000 Direct labor costs: $20,000 Variable overhead costs: $10,000 The firm's total units (completed and in process) is 1,839. The firm has 45 units in process and 96 unsold units in finished goods. The firm has $339 of unused raw materials left over at the end of the period. What is the balance of the Cost of Goods Sold account AFTER the firm backflushes costs to inventory accounts (round final answer to nearest cent if necessary)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A firm uses backflush costing on a direct
costing basis. It incurs the following costs
this period (the firm has NO fixed overhead
costs).
• Direct materials costs: $20,000
Direct labor costs: $20,000
Variable overhead costs: $10,000
The firm's total units (completed and in
process) is 1,839. The firm has 45 units in
process and 96 unsold units in finished
goods. The firm has $339 of unused raw
materials left over at the end of the period.
What is the balance of the Cost of Goods
Sold account AFTER the firm backflushes
costs to inventory accounts (round final
answer to nearest cent if necessary)?
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