Cost of goods manufactured equals $44,000 for 2005. Finished goods inventory is $2,000 at the beginning of the year and $5,500 at the end of the year. Total manufacturing overhead is $4,500. Beginning and ending work in process for 2005 are $4,000 and $5,000 respectively. How much is the cost of goods sold for the year? A. $47,500 B. $40,500

Cost of goods manufactured equals $44,000 for 2005. Finished goods inventory is $2,000 at the beginning of the year and $5,500 at the end of the year. Total manufacturing overhead is $4,500. Beginning and ending work in process for 2005 are $4,000 and $5,000 respectively. How much is the cost of goods sold for the year? A. $47,500 B. $40,500

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
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