Bing Industries manufactures and sells a single product. The selling price is $800 per unit. In its first year of operations (Year 1), Bing produces 2,500 units and sells 2,000 units. In Year 2, Bing produces 2,000 units and sells 2,500 units. Bing's manufacturing costs were as follows in each of the two years: Direct materials, per unit Direct labor, per unit Variable manufacturing overhead, per unit Fixed manufacturing overhead, total for year $320 $160 $52 $300,000 Using absorption costing, what is the cost of goods sold in Year 2? Round to the nearest whole dollar amount and do not enter a dollar sign or a decimal point (e.g., enter 89, not $89.00).

Bing Industries manufactures and sells a single product. The selling price is $800 per unit. In its first year of operations (Year 1), Bing produces 2,500 units and sells 2,000 units. In Year 2, Bing produces 2,000 units and sells 2,500 units. Bing's manufacturing costs were as follows in each of the two years: Direct materials, per unit Direct labor, per unit Variable manufacturing overhead, per unit Fixed manufacturing overhead, total for year $320 $160 $52 $300,000 Using absorption costing, what is the cost of goods sold in Year 2? Round to the nearest whole dollar amount and do not enter a dollar sign or a decimal point (e.g., enter 89, not $89.00).

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PA: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin...

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

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Bing Industries manufactures and sells a single product. The selling price is $800 per unit. In its first
year of operations (Year 1), Bing produces 2,500 units and sells 2,000 units. In Year 2, Bing produces
2,000 units and sells 2,500 units. Bing's manufacturing costs were as follows in each of the two
years:
Direct materials, per unit
Direct labor, per unit
Variable manufacturing overhead, per unit
Fixed manufacturing overhead, total for year
$320
$160
$52
$300,000
Using absorption costing, what is the cost of goods sold in Year 2? Round to the nearest whole
dollar amount and do not enter a dollar sign or a decimal point (e.g., enter 89, not $89.00).

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