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    Creative Products Inc: costs, COGS, net income

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    Creative Products Inc. incurred the following costs:

    Administrative Costs = $2,000
    Advertising Costs = $1,000
    Direct Material Used = $8,000
    Direct Labor = $20,000
    Factory equipment deprectiation= $1,000
    Factory Rent = $5,000
    Indirect Labor = $3,000
    Indirect Materials = $2,000

    During the year, 3,000 units were produced out of which 2,750 units were sold for $30.

    A) Calculate the total product costs incurred for the year.
    B) What is the product cost per unit?
    C) What is the cost of goods sold for the year?
    D) What is net income for the year?

    Please provide the steps and details to get the answer.

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    Solution Preview


    8,000 + 20,000 = 28,000
    direct materials + direct labor = total product costs incurred for the year.

    (B) ...

    Solution Summary

    This solution calculates the product costs, cost per unit, COGS, and net income for the year, for Creative Products, Inc. All calculations are provided.