ABC Corp. is a manufacturer of widgets. During the year 2022, they purchased raw materials worth $500,000, incurred direct labor costs of $200,000, and allocated $100,000 to factory overhead costs. The company produced 100,000 widgets and sold 90,000 of them for $20 each. The company uses the full absorption costing method to calculate its product costs. Calculate the following:

a) The cost of goods sold for the year ended December 31, 2022
b) The gross profit for the year ended December 31, 2022
c) The net income for the year ended December 31, 2022
d) The break-even point in units, assuming the selling price and variable costs remain constant
e) The margin of safety in units and as a percentage of sales

Answer rating: 100% (QA)

The detailed answer for the above question is provided below a To calculate the cost of goods sold for the year ended December 31 2022 we need to use ... View the full answer