Question

Cost of Goods Sold, Sales Revenue, Income Statement Jasper Company provided the following information for last year: Sales in units 280,000 Selling price $12 Direct materials 180,000 Direct labor 505,000 Manufacturing overhead 110,000 Selling expense 437,000 Administrative expense 854,000 Last year, beginning and ending inventories of work in process and finished goods equaled zero. Required: Calculate the cost of goods sold for last year.

Answer 1

Answer:

The cost of goods sold for last year was $795,000

Explanation:

Last year, in Jasper Company, beginning and ending inventories of work in process and finished goods equaled zero. Therefore,

The cost of goods sold for last year = Total cost of units were produced = Direct materials + Direct labor + Manufacturing overhead

Jasper Company had Direct materials of $180,000, Direct labor of $505,000, Manufacturing overhead of $110,000

The cost of goods sold for last year = $180,000 + $505,000 + $110,000 = $795,000