Question

Baird Manufacturing Company began operations on January 1. During the year, it started and completed 1,800 units of product. The financial statements are prepared in accordance with GAAP. The company incurred the following costs: 1. Raw materials purchased and used-$3,090. 2. Wages of production workers-$3,560. 3. Salaries of administrative and sales personnel-$1,990. 4. Depreciation on manufacturing equipment-$6,130. 5. Depreciation on administrative equipment-$1,800. Baird sold 1,180 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.) $ 12.780 a. Total product cost b. Total cost of ending inventory c. Total cost of goods sold 7,578

Answer 1

Baird Manufacturing Company
Particulars	In $	In $	Cost PU
Raw Material	3090
Wages	3560
Depreciation on Manufacturing equipment	6130
Cost of Production		12780	7.10
Salaries of Adminstrative and sales personnel	1990
Depreciation on Administrative Equipment	1800	3790
Total Cost		16570	9.21
Total Product cost for the Year	16570
Note
Total cost or alternatively cost of sales is the cost of production plus selling and distribution overheads.
Depreciation on Manufacturing equipment is Part of Production cost
Total Cost of Ending inventory
Completed Units	1800
Sales Units	1180
Ending inventory in Units	620
Ending inventory in Vaulue	4402
Total Cost of Good sold	10862.56