Answer: $59040
Explanation: Cost of goods sold can be defined as the amount of resources used by the entity for making sales. In the given case it can be computed as follows :-
cost of goods sold = raw materials used + direct labor wages + depreciation on product equipment + packaging and shipping supplies + rent on manufacturing facilities
putting the values into equation we get :-
cost of goods sold = 9,700 + 29,700 + 1,970 + 14,700 + 2,970 = $59040
Answer: $56,070
Explanation:
Given that,
Raw materials used = $9,700
Direct labor wages = $29,700
Sales salaries and commissions = $24,700
Depreciation on production equipment = 1,970
Rent on manufacturing facilities = 14,700
Packaging and shipping supplies = 2,970
Sales revenue = 116,400
Units produced and sold = 9,700 units
Selling price per unit = $ 12.00
Therefore,
Company's cost of goods sold = Raw materials used + Direct labor wages + Overhead costs
= $9,700 + $29,700 + (1,970 + 14,700)
= $56,070
