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Unformatted text preview: Beginning balance 11,000 Beginning balance 3,000 Purchases +12,000 Materials +10,000 COGM +20,000 Used-10,000 Labor +9,000 COGS-18,000 Ending balance =6,000 Overhead +8,000 Ending balance =5,000 COGM-20,000 Ending balance =18,000 b. Suppose the company completed 5,000 units during February, and sold 4,500 units. What is the unit product cost? How is this related to the cost of goods sold? $20,000 COGM 5,000 units completed = $4.00 cost per unit $4.00 x 4,500 units sold = $18,000 COGS (one way to think of COGS is the unit cost x number sold) c. Prepare a GAAP income statement for Ayushi Company for February. Ayushi Company Income Statement for February Revenue $65,250 $14.50 price x 4,500 units sold COGS 18,000 $4.00 unit product cost x 4,500 units sold Gross Margin $47,250 Selling and Admin. 35,000 $23,000 selling + $12,000 administrative Profit before taxes $12,250...
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This note was uploaded on 02/02/2010 for the course BUS-A 202 taught by Professor Keenan during the Spring '08 term at Indiana.
- Spring '08