Rene Inc. has capacity to produce 15,000 units of inventory. It operated at capacity during the second quarter of the current year and provided the following cost data:Cost DataAccountsAmountsProduction costs (15,000 units):- Direct materials$150,000 Direct labor180,000 Variable manufacturing overhead120,000 Fixed manufacturing overhead45,000Total production costs$495,000Operating expenses:- Variable operating expenses$60,000 Fixed operating expenses40,000Total operating expenses$100,000There was no inventory on hand at the beginning of the quarter. 2,000 units remained unsold at the end of the quarter.The COGS to be reported on the income statement for the second quarter under absorption costing method is:Group of answer choices$429,000$515,667.67$442,000$390,000

The objective of the question is to calculate the Cost of Goods Sold (COGS) for the second quarter…

Answered: Rene Inc. has capacity to produce…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 5E: On April 30, the end of the first month of operations, Joplin Company prepared the following income...

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Rene Inc. has capacity to produce 15,000 units of inventory. It operated at capacity during the second quarter of the current year and provided the following cost data:

Cost Data

Accounts	Amounts
Production costs (15,000 units):	-
Direct materials	$150,000
Direct labor	180,000
Variable manufacturing overhead	120,000
Fixed manufacturing overhead	45,000
Total production costs	$495,000
Operating expenses:	-
Variable operating expenses	$60,000
Fixed operating expenses	40,000
Total operating expenses	$100,000