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View Full Version : How do I calculate the cost of goods sold for the obsorption income statement


terrence1
Nov 2, 2011, 01:34 PM
During the first month of operations ended May 31, 2012, Dorm Fridge Company manufactured 12,300 microwaves, of which 11,700 were sold. Operating data for the month are summarized as follows:

Sales $1,930,500
Manufacturing costs:
Direct materials $959,400
Direct labor 282,900
Variable manufacturing cost 246,000
Fixed manufacturing cost 123,000 1,611,300
Selling and administrative expenses:
Variable 152,100
Fixed 70,000 222,100
is the problem:

I know the sales is 1930.500, but how do I get the cost of goods sold I do not know what numbers to use to get this amount