Bingimton Company
Bingimton Company provided the following information for last month. $$\begin{array} { l r }
\text { Production in units } & 1,000 \
\text { Direct materials cost } & \$ 3,000 \
\text { Direct labour cost } & \$ 4,000 \
\text { Manufacturing overhead cost } & \$ 7,600 \
\text { Sales commission per unit sold } & \$ 2 \
\text { Price per unit sold } & \$ 24 \
\text { Fixed selling and administrative expense } & \$ 5,000
\end{array}$$ There were no beginning and ending inventories.
-Refer to Southern Inc. What is the cost in dollars of purchases for July?

Question

Bingimton Company
Bingimton Company provided the following information for last month. $$\begin{array} { l r } 
\text { Production in units } & 1,000 \
\text { Direct materials cost } & \$ 3,000 \
\text { Direct labour cost } & \$ 4,000 \
\text { Manufacturing overhead cost } & \$ 7,600 \
\text { Sales commission per unit sold } & \$ 2 \
\text { Price per unit sold } & \$ 24 \
\text { Fixed selling and administrative expense } & \$ 5,000
\end{array}$$ There were no beginning and ending inventories.
-Refer to Southern Inc. What is the cost in dollars of purchases for July?

Quizplus · Accepted Answer

Direct materials cost = $3,000Direct labour cost = $4,000Manufacturing overhead cost = $7,600Total manufacturing cost = $3,000 + $4,000 + $7,600 = $14,600Cost of goods sold = Total manufacturing cost = $14,600Purchases = Cost of goods sold + Ending inventory - Beginning inventoryPurchases = $14,600 + $0 - $0 = $14,600

Bingimton Company Bingimton Company Provided the Following Information for Last

Bingimton Company
Bingimton Company Provided the Following Information for Last