Answer:
COGS= $176,800
Explanation:
Giving the following information:
Direct materials costs are $2.00
Direct manufacturing labor is $6.00
Manufacturing overhead is $0.84 per pool cue.
Direct materials:
Beginning inventory= 26,000
Ending inventory= 26,000
Finished goods inventory
Beginning inventory= 1,700
Ending inventory= 3,500
First, we need to calculate the units produced:
Production= sales + desired ending inventory - beginning inventory
Production= 20,000 + 3,500 - 1,700
Production= 21,800
Now, the cost of goods sold:
COGS= (2 + 6 + 0.84)*20,000= $176,800
