Global Box Co. expects to sell 18,000 boxes in 2014. The company had enough beginning inventory materials to produce 20,500 units. The beginning inventory of finished units totaled 1,500 with a target ending inventory of 1,800 units. The boxes sell for 2.50 dollars, and the company keeps no work-in-process inventory. Direct materials cost for each box total 0.90 dollars, while direct labor is 0.45, factory overhead is 0.15 per box, and administrative fees total 100 dollars. What will be Global Box Co.'s Cost of Goods Sold in 2014?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
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Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 6PB: Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen...
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Global Box Co. expects to sell 18,000 boxes
in 2014. The company had enough beginning
inventory materials to produce 20,500
units. The beginning inventory of finished
units totaled 1,500 with a target ending
inventory of 1,800 units. The boxes sell
for 2.50 dollars, and the company keeps no
work-in-process inventory. Direct materials
cost for each box total 0.90 dollars, while
direct labor is 0.45, factory overhead is
0.15 per box, and administrative fees total
100 dollars. What will be Global Box Co.'s
Cost of Goods Sold in 2014?
Transcribed Image Text:Global Box Co. expects to sell 18,000 boxes in 2014. The company had enough beginning inventory materials to produce 20,500 units. The beginning inventory of finished units totaled 1,500 with a target ending inventory of 1,800 units. The boxes sell for 2.50 dollars, and the company keeps no work-in-process inventory. Direct materials cost for each box total 0.90 dollars, while direct labor is 0.45, factory overhead is 0.15 per box, and administrative fees total 100 dollars. What will be Global Box Co.'s Cost of Goods Sold in 2014?
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