Question

Solomon Manufacturing Company began operations on January 1. During the year, it started and completed 1.790 units of product. The financial statements are prepared in accordance with GAAP. The company incurred the following costs: 1. Raw materials purchased and used-$3,170 2. Wages of production workers-$3,590. 3. Salaries of administrative and sales personnel-$1,970. 4. Depreciation on manufacturing equipment-$5,770. 5. Depreciation on administrative equipment-$1,810. Solomon sold 1,130 units of product. Required a. Determine the total product cost for the year. b. Determine the total cost of the ending inventory (Do not round intermediate calculations.) c. Determine the total of cost of goods sold. (Do not round intermediate calculations.) a b. c. Total product cost Total cost of ending inventory Total cost of goods sold

Answer 1

1 a) 2 Particulars Amount 3 Raw materials used $ 3,170 4 Wages of production workers $ 3,590 5 Depreciation on manufacturing equipment ($ 5,770 6 Total product cost $ 12,530 7 660 $ 4,620 8 b) 9 Product cost per unit 10 Ending inventory in units 11 Total cost of ending inventory 12 13) 14 Total units sold 15 Total cost of goods sold 1130 7,910 $

1 a) 2 Particulars Amount 3 Raw materials used 3170 4 Wages of production workers 3590 5 Depreciation on manufacturing equipment 5770 6 Total product cost =+B3+B4+B5 8 b) 9 Product cost per unit 10 Ending inventory in units 11 Total cost of ending inventory =+B6/1790 =1790-1130 =+B9*B10 12 1310) 14 Total units sold 15 Total cost of goods sold 1130 =+B14*B9