Santiago Manufacturing Company began operations on January 1. During the year, i

Question

Santiago Manufacturing Company began operations on January 1. During the year, it started and completed 1,710 units of product. The company incurred the following costs. 1. Raw materials purchased and used $3,080 2. Wages of production workers-$3,540. 3. Salaries of administrative and sales personnel-$1,940 4. Depreciation on manufacturing equipment-$5,521. Santiago sold 1,210 units of product. a. Determine the total product cost for the year. Total product cost b. Determine the total cost of the ending inventory. (Do not round intermediate calculations.) Total cost of ending inventory

Explanation / Answer

Product Cost Direct Material 3080 Direct Labor 3540 Depreciation on Manufacturing Equipmt 5521 Total product Cost 12141 Total product Cost is $ 12141 2 Cost of ending inventory Product Cost 12141 Ending Inventory 12141*1210/1710 $8,591 3 Cost of Goods sold 12141-8591 3550

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