Wooten & McMahon Enterprises produces a product with the following per-unit costs:

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Last year, Wooten & McMahon Enterprises produced and sold 825 units at a sales price of $74.80 each.Total selling and administrative expense was $24,200.What was the cost of goods sold last year? (Note: Round answer to two decimal places.)

A) $47,500.10
B) $31,597.50
C) $14,250.50
D) $51,000.20

Question

Wooten & McMahon Enterprises produces a product with the following per-unit costs:
 
-
 Last year, Wooten & McMahon Enterprises produced and sold 825 units at a sales price of $74.80 each.Total selling and administrative expense was $24,200.What was the cost of goods sold last year? (Note: Round answer to two decimal places.)
 
A) $47,500.10 
B) $31,597.50 
C) $14,250.50 
D) $51,000.20

Quizplus · Accepted Answer

SUPPORTING CALCULATIONS:
Cost of goods sold for last year = Units sold × Per-unit cost of producing units
= Units sold × (Per-unit direct materials + Per-unit direct labor + Per-unit manufacturing overhead)
Cost of goods sold for last year = 825 units × ($13 + $8.8 + $16.5) = 825 units × $38.30 = $31,597.50

Wooten & McMahon Enterprises Produces a Product with the Following