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Creative Products Inc During the Year,3000 Units Were Produced Out of Which 2750

Question 82

Essay

Creative Products Inc.incurred the following costs (in alphabetical order)during 2005 related to one of its products:
 Administrative costs 2000 Advertising costs 1000 Direct material used 8000 Direct labour 20000 Factory equipment depreciation 1000 Factory rent 5000 Indirect labour 3000 Indirect materials 2000\begin{array}{lr}\text { Administrative costs } & 2000 \\\text { Advertising costs } & 1000 \\\text { Direct material used } & 8000 \\\text { Direct labour } &20000\\\text { Factory equipment depreciation } & 1000 \\\text { Factory rent } &5000 \\\text { Indirect labour } & 3000 \\\text { Indirect materials } &2000\end{array}
During the year,3000 units were produced out of which 2750 units were sold for $30 each.
Required:
A. Calculate the total product costs incurred for the year.
B. What is the product cost per unit?
C. What is cost of goods sold for the year?
D. What is net income for the year?

Correct Answer:

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A. Total product costs blured imageblured imageblured image
B. Pro...

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