Question

In its first year of operation, the Excellent Publishing Company sells 56,000 units and has 1,100 units in stock at year end. The cost of goods sold are $3,800.00. What are the total manufacturing costs for the year if the average unit cost is $6.00?

Answer 1

Answer:

$10,400

Explanation:

he cost of the cost sold is the total cost sold in a particular year.  the cost of goods sold COGS is calculated using the formula

COGS = opening stock + purchases(total manufacturing costs) - closing stock.

In the case, the opening stock is 0

closing stock 11,00 units

cost of good sold = $3800

average cost per unit = $6

Cost = $3800

cost of closing stock = 1,100 x $6 = $6,600

Therefore: $3,800= 0 +TMC - $6600

Total manufacturing cost = $3800 + $6600

=$10,400