Use the information below to answer the following question(s).Country Heather manufactures flowerpots.It expects to sell 40,000 flowerpots in 2019.The company had enough beginning inventory of direct materials to produce 48,000 units.Beginning inventory of finished units totalled 4,000 with a target ending inventory of 5,000 units.The flowerpots sell for $6.00 and the company keeps no work-in-process inventory.Direct materials costs for each flowerpot total $2.00 while direct labour is $1.00.Factory overhead is $0.40 per flowerpot.
-What will be Country Heather's cost of goods sold?

Question

Quizplus · Accepted Answer

The cost of goods sold is calculated by multiplying the cost per unit by the number of units sold. The cost per unit is $2.00 (materials) + $1.00 (labor) + $0.40 (overhead) = $3.40. The number of units sold is 40,000. Therefore, the cost of goods sold is 40,000 units * $3.40 = $136,000.

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