I am having understanding how to calculate cost of goods sol
I am having understanding how to calculate cost of goods sold to this question Road Warrior Corporation began operations early in the current year, building luxury motor homes. During the year, the company started and completed 50 motor homes at a cost of $60,000 per unit. Of these, 48 were sold for $95,000 each and two remain in finished goods inventory. In addition, the company had six partially completed units in its factory at year-end. Total costs for the year (summarized alphabetically) were as follows. Direct materials used $ 789,000 Direct labor 832,000 Income tax expense 100,000 General and administrative expenses 500,000 Manufacturing overhead 1,690,000 Selling expenses 500,000
Solution
Solution
Product cost per unit = $60,000
Nos of unit sold = 48
Cost of goods sold = $60,000 * 48 = $2,880,000
