Allied Company showed the following costs for last month.
Direct materials $40,000
Direct labour 35,000
Manufacturing overhead 52,000
Selling expense 17,000
Administrative expense 12,000
Last month, Allied produced and sold 20,000 units at a sales price per unit of $18. Assume no beginning or ending inventory balances for work-in-process and finished goods inventory.
Required: Solve for the following amounts.
A. total product cost for last month
B. unit product cost for last month
C. total period costs
D. gross margin for last month
E. operating income for last month

Question

Quizplus · Accepted Answer

The Answer of Allied Company showed the following costs for last month.
Direct materials $40,000
Direct labour 35,000
Manufacturing overhead 52,000
Selling expense 17,000
Administrative expense 12,000
Last month, Allied produced and sold 20,000 units at a sales price per unit of $18. Assume no beginning or ending inventory balances for work-in-process and finished goods inventory.
Required: Solve for the following amounts.
A. total product cost for last month
B. unit product cost for last month
C. total period costs
D. gross margin for last month
E. operating income for last month

Allied Company Showed the Following Costs for Last Month