EXERCISE 5-12 (30 MINUTES)

3. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH05 COST BEHAIVIOR ANALYSSIS AND USE
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH05 COST BEHAIVIOR ANALYSSIS AND USE
3. The cost of goods manufactured if 7,000 units are produced: Direct materials cost (7,000 units × $6.00 per unit) . $ 42,000 Direct labor cost (7,000 units × $10.00 per unit) ... 70,000 Manufacturing overhead cost: Fixed portion... $30,000 Variable portion (7,000 units × $8.00 per unit) ... 56,000 86,000 Total manufacturing costs... 198,000 Add: Work in process, beginning ... 0