Question: Allocating Product Costs Between Ending Inventory and Cost of Goods Sold
Kasey Manufacturing Co. began operations on Jan. 1. During the year, it started and completed 4,000 units of product. The co. incurred the following costs:
1. Raw materials purchased and used-$6,000
2. Wages of production workers-$9,000
3. Salaries of admin and sales personnel-$3,600
4. Depreciation on manufacturing equipment-$10,800
5. Depreciation on admin equipment-$4,000
Kasey sold 3,000 units of product.
a. Determine the total product cost for the year.
b. Determine the total cost of the ending inventory.
c. Determine the total cost of goods sold.