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Period Costs, Raw Material and Cost of Goods

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.

Solution Summary

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