Question

Flow of Costs and Income Statement

campaign for Cyclone Panic and $856,000 in legal costs. The CD production began on April 1,20Y8.
R-Tunes uses a job order cost system to accumulate costs associated with a CD title. The unit direct materials cost for the
CD is:
Blank CD $1.80
Case ,0.60
Song lyric insert ,0.60
After the CDs are copied, they are brought to an assembly area where an employee packs the CD with a case and song lyric insert. The direct labor cost is $0.25 per CD.Total completed production was 713,000 units during the year. Other information is as follows:
Number of customers (record stores)
Number of CDs sold ,606,100
Wholesale price (to record store) per CD $16
Instructions:
R-Tunes Inc.
Cyclone Panic CD
Income Statement
For the Year Ended December 31, 20 Y8
Selling expenses:

Calculate the sales amount.

Answer 1

To calculate the sales amount, multiply the number of CDs sold by the wholesale price per CD.

Step-by-step explanation:

To calculate the sales amount, we need to multiply the number of CDs sold by the wholesale price per CD. In this case, the number of CDs sold is 606,100 and the wholesale price per CD is $16. So the sales amount can be calculated as follows:

Sales amount = Number of CDs sold * Wholesale price per CD

Sales amount = 606,100 * $16 = $9,777,600

To calculate the sales amount, multiply the number of CDs sold by the wholesale price per CD.