George's Garage incurred the following costs during May: $$\begin{array} { l r }
\text { Raw materials } & \$ 45,000 \
\text { Direct labor } & 115,000 \
\text { Manufacturing overhead } & 56,000 \
\text { Selling expenses } & 35,400 \
\text { Administrative expenses } & 22,600 \
\text { Interest expense } & 12,500
\end{array}$$ During the month, 6,000 units of product were manufactured and 5,500 units of product were sold. On May 1, George's carried no inventories.
(a.) Calculate the cost of goods manufactured during May and the average cost per unit of product manufactured.
(b.) Calculate the cost of goods sold during May.
(c.) Where in the financial statements will the difference between cost of goods manufactured and cost of goods sold be classified?

Question

George's Garage incurred the following costs during May: $$\begin{array} { l r } 
\text { Raw materials } & \$ 45,000 \
\text { Direct labor } & 115,000 \
\text { Manufacturing overhead } & 56,000 \
\text { Selling expenses } & 35,400 \
\text { Administrative expenses } & 22,600 \
\text { Interest expense } & 12,500
\end{array}$$ During the month, 6,000 units of product were manufactured and 5,500 units of product were sold. On May 1, George's carried no inventories.
(a.) Calculate the cost of goods manufactured during May and the average cost per unit of product manufactured.
(b.) Calculate the cost of goods sold during May.
(c.) Where in the financial statements will the difference between cost of goods manufactured and cost of goods sold be classified?

Quizplus · Accepted Answer

The Answer of George's Garage incurred the following costs during May: $$\begin{array} { l r } 
\text { Raw materials } & \$ 45,000 \
\text { Direct labor } & 115,000 \
\text { Manufacturing overhead } & 56,000 \
\text { Selling expenses } & 35,400 \
\text { Administrative expenses } & 22,600 \
\text { Interest expense } & 12,500
\end{array}$$ During the month, 6,000 units of product were manufactured and 5,500 units of product were sold. On May 1, George's carried no inventories.
(a.) Calculate the cost of goods manufactured during May and the average cost per unit of product manufactured.
(b.) Calculate the cost of goods sold during May.
(c.) Where in the financial statements will the difference between cost of goods manufactured and cost of goods sold be classified?

George's Garage Incurred the Following Costs During May During the Month, 6,000 Units of Product Were Manufactured and l