Question

Please show me the calculation too, because I want to learn. Thank you

Question 32 1 pts Cake Creations incurred the following costs (in alphabetical order) during 2020 related to making its famous chocolate mousse cake: Administrative costs $ 2000 Advertising costs 1000 Direct materials purchased 8000 Cake Bakers wages 20 000 Factory equipment depreciation 1000 Factory rent 5000 Indirect labour 3000 Indirect materials 2000 In addition, the following information is also available: Beginning Ending Direct materials $ 2 000 $ 4 000 Work-in-process 25 000 18 000 Finished goods 4000 12 000

Answer 1

Answer requirements as follows: A B с 1 32 Particulars Amount 2 Beginning direct materials $ 2,000 3 Add: Purchases $ 8,000 4 Less: Ending material $ 4,000 5 Direct material used S 6,000 6 7 8 33 Direct Material used $ 6,000 9 Direct Labor $ 20,000 10 Factory equipment depreciation $ 1,000 11 Factory rent $ 5,000 12 Indirect labor $ 3,000 13 Indirect materials $ 2,000 14 Add: Beginning WIP $ 25,000 15 Less: Ending WIP $ -18,000 16 Cost of Goods Manufactured S 44,000 17 18 34 Cost of goods manufactured $ 44,000 19 Add: Beginning finished goods 4000 20 Less: Ending finished goods -12000 21 Cost of goods sold S 36,000 37. Desired unit sales = Fixed cost + Direct profit/Contribution per unit = $2,000+ $50.0004_Selling price - Variable cost) = $52.0004$20-$5) = 3467 units