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
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...
icon
Related questions
Question

Give me answer

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?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning