Illinois Company reported the following information about the - 12855

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  • From: Business,
  • Posted on: Sun 22 Jul, 2012
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Request Description

 

Illinois Company reported the following information about the production and sales of its only product during its first month of operations: 

 

               Sales ($225 per unit)     $405,000 

               Direct materials used      $176,000 

               Direct labor     $100,000 

               Variable factory overhead     $44,000 

               Fixed factory overhead     $80,000 

               Variable selling and administrative expenses     $20,000 

               Fixed selling and administrative expenses     $10,000 

 

          Ending inventories: 

 

Direct materials     -0- 

WIP                                         -0- 

Finished goods     400     units 

 

     The cost of goods sold under variable costing is_____. 

 

     a.     $320,000 

     b.     $360,000 

     c.     $288,000 

     d.     $272,000 

 

 

Solution Description

     Illinois Company reported the following information about the production and sales of its only product during its first month of operations:

               Sales ($225 per unit)     $405,000
               Direct materials used      $176,000
           &nbs