Explore BrainMass
Share

Period Costs, Raw Material and Cost of Goods

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

Pearce Manufacturing Inc. incurred the following costs in February:

Direct Labor $40,000
Indirect Labor $15,000
Administrative Salaries $8,000
Raw materials purchased $10,000
Indirect materials used $4,000

Advertising Costs $1,000
Factory Rent $4,000
Factory Depreciation $2,000
Administrative Rent $3,000
Administrative Depreciation $1,000

In addtion, the following information is also available
Beginning / Ending
Raw Materials $2,000 / $4,000
Work-in-process $25,000 / $18,000
Finished Goods $4,000 / $12,000

Number of units produced 10,000 units
Number of units sold (sales price of $25 per unit) 9,000 units

A) Calculate total period costs.

B) Calculate raw material used.

C) Calculate cost of goods manufactured.

© BrainMass Inc. brainmass.com March 22, 2019, 1:05 am ad1c9bdddf
https://brainmass.com/business/payback-period-and-discounted-payback-period/period-costs-raw-material-cost-goods-522655

Solution Summary

Detailed analysis of calculating period cost, raw material used and cost of goods manufactured.

$2.19