Answer:
the company's cost of goods sold is $120,000
Explanation:
Note : all units produced are sold (10,000)
Therefore Cost of goods sold is equal to Cost of Goods Manufactured
Calculation of Cost of Goods Manufactured
Raw materials used                  20,000
Direct labor wages                   60,000
Depreciation on production equipment   4,000
Rent on manufacturing facilities        30,000
Packaging and shipping supplies        6,000
Total                              120,000
Answer: $114,000
Explanation:
To calculate the Cost of Goods sold we would first needs to know Product Costing in Manufacturing firms.
The formula for which is,
Product Costing = (Materials cost + Labor costs + Overhead costs) ÷ Number of units produced
It is important to calculate this because when multiplied by the number of units SOLD, you get Cost of goods sold.
Calculating therefore would be,
Product Costing = 20,000 + 60,000 + (4,000 + 30,000) depreciation and rent on manufacturing facilities ÷ 10,000 units produced
= $11.40 per unit
Now we can calculate the Cost of goods sold by,
Cost of goods sold = Number of units sold × Product Costing in Manufacturing Companies
Cost of goods sold = 10,000 units sold × 11.40
= $114,000
The company's cost of goods sold is $114,000.
