The following information was extracted from the first year absorption-based accounting records of Ellis Corporation Total fixed costs incurred $100,000 Total variable costs incurred 50,000 Total period costs incurred 70,000 Total variable period costs incurred 30,000 Units produced 20,000 Units sold 12,000 Unit sales price $12 Refer to Ellis Corporation. What is Cost of Goods Sold for Ellis
Corporation's first year?
a. $80,000
b. $90,000
c. $48,000
d. can't be determined from the information given
C
Total variable manufacturing costs = $50,000 - 30,000 = $20,000
Total fixed period costs incurred = $70,000 - 30,000 = $40,000
Total fixed manufacturing costs = $100,000 - 40,000 = $60,000
Total manufacturing costs = $60,000 + $20,000 = $80,000
Percent of goods sold: 12,000/20,000 = 60%
$80,000 * 60% = $48,000
You might also like to view...
Goodwill can be recorded as an asset when a(n)
a. business has above normal profitability compared to other businesses in its industry. b. business can determine that it has created customer goodwill and name recognition. c. offer is received to purchase the business at a price in excess of the value of the assets. d. business is purchased and payment is made in excess of the value of the net assets.
In the context of marketing planning,__________provides the mechanisms for evaluating marketing results in light of the plan's objectives, and for correcting actions that do not help the organization reach those objectives within budget guidelines
Fill in the blanks with correct word.
Merck & Co., Inc., a pharmaceutical manufacturer, wishes to promote its products to retail pharmacists, physicians, and hospitals. Merck should recruit _____.
A. order getters B. order takers C. outside salespersons D. advisory salespersons E. missionary salespersons
Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department: Units:Beginning Inventory: 25,000 units, 100% complete as to materials and 55% complete as to conversion.Units started and completed: 110,000.Units completed and transferred out: 135,000.Ending Inventory: 30,000 units, 100% complete as to materials and 30% complete as to conversion. Costs:Costs in beginning Work in Process - Direct Materials: $43,000.Costs in beginning Work in Process - Conversion: $48,850.Costs incurred in February - Direct Materials: $287,000.Costs incurred in February - Conversion: $599,150. Calculate the equivalent units of materials.
A. 140,000 B. 144,000 C. 110,000 D. 130,250 E. 165,000