The following information pertains to Whitfield, Inc., during 2014: Production o

Question

The following information pertains to Whitfield, Inc., during 2014: Production output....... 24,000 units Sales …… 17,000 units Direct materials costs......... $68,000 Direct labor costs...... 3,700 hours at $11 per hour Factory overhead........ $4 per unit plus $87,000 per year Selling expenses........ $0.75 per unit sold plus $90,000 per year

1. [5 pts.] Cost of goods sold in 2014 = $ ________________

2. [2 pts.] Total period costs that will appear on the 2014 income statement = $ ______________

Explanation / Answer

2. [2 pts.] Total period costs that will appear on the 2014 income statement

Number of units sold                                                                           17,000 Direct meterial cost of unit sold 68,000/24,000*17,000 = $48,167 Direct labour cost of unit sold (3,700*$11)/24,000*17,000 = $28,829 Factory overhead Variable   17,000*4 = $68,000 Fixed $87,000/24,000*17,000 = 61,625 Cost of goods sold in 2014 $48,167+28,829+68,000+61,625 = $206,621

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