Use the following data to answer the question Using absorption costing, what is

Question

Use the following data to answer the question

Using absorption costing, what is the COGS in January?

Use the following data to answer the question

January February March Unit Data Beginning Inventory 0 ? ? Production 1000 600 1000 Sales 800 800 1000 variable costs manufacturing cost per unit produced $900 $900 $900 marketing cost per unit sold produced $600 $600 $600 Fixed costs Manufacturing costs $450,000 $450,000 $450,000 Marketing costs $140,000 $140,000 $140,000

Using absorption costing, what is the COGS in January?

Correct Answer: 1,080,000.00 Use the following data to answer the question Using absorption costing, what is the COGS in January?

Explanation / Answer

Hi,

Please find the answer as follows:

COGS = 900*800 (Variable Cost of Goods Sold)+ 450000/1000*800 (Fixed Part of Goods Sold) = 1080000

Thanks.

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