Question

The following data relates to the Density Company's first operating period. Calculate cost o

goods sold for each product. (Note - there is NO beginning inventory)
Overhead
Rate
Cost/Unit
Direct
Direct Product
Materials
Labor
Units
(Percent of Direct Labor Cost)

Answer 1

The cost of goods sold (COGS) for each product can be calculated by adding the direct materials cost, direct labor cost, and overhead cost. Here's an example:

Step-by-step explanation:

The cost of goods sold (COGS) for each product can be calculated by multiplying the direct materials cost, direct labor cost, and the overhead cost. To calculate the COGS for each product, you need to determine the total cost of each component for each product and then add them together. Here's an example:

Product A:

Total cost = Direct materials cost + Direct labor cost + Overhead cost

= $X + $Y + (Percent of Direct Labor Cost * Direct labor cost)

= $X + $Y + (Z% * $Y)

Product B:

Total cost = Direct materials cost + Direct labor cost + Overhead cost

= $P + $Q + (Percent of Direct Labor Cost * Direct labor cost)

= $P + $Q + (R% * $Q)

By following this method for each product, you can calculate the COGS for each one.