PFA Corporation uses a throughput costing system and reported the following information for its first month of operations: Units produced 140
Units sold 120
Material cost per unit produced $3.50
Conversion cost per unit produced $6.50
Fixed period costs per unit produced $6.00
Variable period costs per unit produced $4.00
Selling price per unit $25.00
PFA's throughput cost of goods sold was:
A)$420
B)$490
C)$1,200
D)$1,400

Question

Quizplus · Accepted Answer

Throughput cost of goods sold = Units sold x (Material cost per unit + Conversion cost per unit + Fixed period costs per unit + Variable period costs per unit)= 120 x ($3.50 + $6.50 + $6.00 + $4.00)= 120 x $20.00= $2,400

PFA Corporation Uses a Throughput Costing System and Reported the Following