Question

Adelphi Company provides the following information for their first year of operations in 2018:

            Sales, 10,000 units @ $19 each

            Total production, 11,000 units

Production costs per unit:

         Direct materials            $4.00

                     Direct labor                   $4.00

                     Variable overhead        $2.00

            Fixed manufacturing overhead      $5,000

Adelphi Company uses absorption costing. Use this information to determine for Adelphi Company the FY 2018 Cost of Goods Sold. (Round & enter final answer to the nearest whole dollar)

Answer 1

COST OF GOODS SOLD USING ABSORPTION COSTING -

Particulars	Per Unit	Amount $
Unit Produced	11,000
Cost of Goods Produced:
Direct Material Cost	4.00	44,000
Direct Labour Cost	4.00	44,000
Variable Overheads	2.00	22,000
Fixed Manufacturing Overheads	0.45	5,000
Cost of Production	10.45	115,000
Unit Sold	10,000
Cost of Goods Sold	10.45	104,545