Chapter 21, Problem 3CP

To determine

Computation of Sales price, Sales revenue and Cost of goods sold:

The units sold are based on the cost plus markup percentage. In such cases, the need is to compute the cost per completed units by computing it through the method of equivalent production by taking in to consideration the equivalent units of completed and in process inventory and the cost per equivalent unit has to be computed for each element of cost.

After computing the cost per completed unit, the defined percentage of mark-up is added to cost for arriving at the Selling price per unit.

On the selling price and cost per completed unit, the total sales revenue and total cost of goods sold is computed by multiplying it with units sold.

The Computation of Selling price, total sales revenue and cost of goods sold for Basic model of shirt.