Clear Water Drinking Company manufactures high-quality drinking flasks. During the month of March, the company purchased $2,000,000 of materials. Also during the month of March, Clear Water incurred direct labor cost of $425,000 and manufacturing overhead of $1,600,000. Inventory information is as follows:

Required:
1. Calculate the cost of goods manufactured for the month of March.
2. Calculate the cost of one flask assuming that 200,000 flasks were completed during March.

Transcribed Image Text:

Materials Work in process March 1 $50,000 90,000 March 31 $60,000 75,000