Muscle Concrete mixes concrete and trucks it to construction sites.The company uses a standard costing system for the batches of concrete produced.The company has a fleet of 10 mixing trucks,each of which goes on three runs per day,350 days per year under normal circumstances.The standard costs are as follows:

During 2017,the company received an unusually large order for a big construction project.As a result,Muscle Concrete had to extend its operating hours and days,temporarily increasing output to 1,250 batches for the year.The company used the first-in,first-out cost flow assumption.Actual variable costs approximated standard costs per batch.Depreciation rates established at the beginning of the year remain valid for the year.
Required:
Determine the amount of cost of goods sold for 2017.

Question

Muscle Concrete mixes concrete and trucks it to construction sites.The company uses a standard costing system for the batches of concrete produced.The company has a fleet of 10 mixing trucks,each of which goes on three runs per day,350 days per year under normal circumstances.The standard costs are as follows:
  
During 2017,the company received an unusually large order for a big construction project.As a result,Muscle Concrete had to extend its operating hours and days,temporarily increasing output to 1,250 batches for the year.The company used the first-in,first-out cost flow assumption.Actual variable costs approximated standard costs per batch.Depreciation rates established at the beginning of the year remain valid for the year.
Required:
Determine the amount of cost of goods sold for 2017.

Quizplus · Accepted Answer

The Answer of Muscle Concrete mixes concrete and trucks it to construction sites.The company uses a standard costing system for the batches of concrete produced.The company has a fleet of 10 mixing trucks,each of which goes on three runs per day,350 days per year under normal circumstances.The standard costs are as follows:
  
During 2017,the company received an unusually large order for a big construction project.As a result,Muscle Concrete had to extend its operating hours and days,temporarily increasing output to 1,250 batches for the year.The company used the first-in,first-out cost flow assumption.Actual variable costs approximated standard costs per batch.Depreciation rates established at the beginning of the year remain valid for the year.
Required:
Determine the amount of cost of goods sold for 2017.

Muscle Concrete Mixes Concrete and Trucks It to Construction Sites