The following events took place during the year for the Boltwood Company. Boltwood manufactures large steel tanks. Boltwood began the year with no inventory.

- Incurred 3000 direct labor hours at $20/hour

- Paid indirect labor costs of $35,000

- Incurred utilities, rent, and depreciation on factory totaling $56,000

- Incurred $3,000 of depreciation on the salesman's car

- Direct materials purchased and used in production amounted to $80,000

- 1,000 steel tanks were started and completed.

- 700 steel tanks were sold for $360,000.

A. What is total manufacturing overhead for the year?

B. What is the balance in the inventory account before any tanks are sold?

C. What is the cost per unit of a tank during this year? Round to the nearest penny

D. What is cost of goods sold for the year?

E. What is the cost of inventory on the balance sheet at the end of the year?

F. What will Boltwood report as gross margin for the year?

Answer rating: 100% (QA)

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