The owner of Magic Manufacturing, Tom Sawyer, is considering selling his business. He provides his accountant with the following information for the month of March, which has just ended: Direct Materials Purchased $ 1,300,000 Prime Costs $ 4,360,000 Direct Labour rate ($/hour) $ 30 per hour Direct Materials, 1st March $ 300,000 Direct Materials, 31st March $ 180,000 Overhead Application Rate $ 11 per direct
The owner of Magic Manufacturing, Tom Sawyer, is considering selling his business. He provides his accountant with the following information for the month of March, which has just ended:
Direct Materials Purchased $ 1,300,000
Prime Costs $ 4,360,000
Direct Labour rate ($/hour) $ 30 per hour
Direct Materials, 1st March $ 300,000
Direct Materials, 31st March $ 180,000
Actual Overhead Incurred $ 1,250,000
Finished Goods, 1st March $ 350,000
Finished Goods, 31st March $ 65,000
Sales Revenues $ 9,691,000
Sales Mark-up 120% on cost
Data for this question is also available in the file: Adjusted COGS.xlsx Download Adjusted COGS.xlsx
Calculate the adjusted cost of goods sold for the month of March.
Do not use the dollar sign $ in your answer. To be marked correct just enter your answer in dollars (rounded to the nearest dollar).
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