Baker Company produces refrigerators. Each refrigerator contains a small thermostat that costs $6. During March, 800...

 

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Baker Company produces refrigerators. Each refrigerator contains a small thermostat that costs $6. During March, 800 of the thermostats were taken from the supply room and installed in refrigerators that were in production. 60% of these refrigerators were completed and transferred into the finished goods warehouse. Of the refrigerators that were completed, 70% were still unsold at the end of March. Assume that there were no inventories of any kind at March 1. Calculate the cost of thermostats in cost of goods sold for March. Able Company reported the following information for the month of May: Sales revenue Beginning finished goods Ending finished goods Gross profit $505,000 $ 84,000 $ 63,000 $ 71,000 Assume there was no overhead variance for May (i.e., the actual overhead was equal to the applied overhead). Calculate Able Company's cost of goods manufactured for May. Baker Company produces refrigerators. Each refrigerator contains a small thermostat that costs $6. During March, 800 of the thermostats were taken from the supply room and installed in refrigerators that were in production. 60% of these refrigerators were completed and transferred into the finished goods warehouse. Of the refrigerators that were completed, 70% were still unsold at the end of March. Assume that there were no inventories of any kind at March 1. Calculate the cost of thermostats in cost of goods sold for March. Able Company reported the following information for the month of May: Sales revenue Beginning finished goods Ending finished goods Gross profit $505,000 $ 84,000 $ 63,000 $ 71,000 Assume there was no overhead variance for May (i.e., the actual overhead was equal to the applied overhead). Calculate Able Company's cost of goods manufactured for May.

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