The following information applies to Hawks Corporation: Using absorption costing, what will Hawks record as total cost of goods sold, assuming no variances were reported?
A)$1,512,000.
B)$1,872,000.
C)$1,944,000.
D)$2,916,000.

Question

The following information applies to Hawks Corporation:  Using absorption costing, what will Hawks record as total cost of goods sold, assuming no variances were reported?
A)$1,512,000. 
B)$1,872,000. 
C)$1,944,000. 
D)$2,916,000.

Quizplus · Accepted Answer

0 + 40,000 - 4,000 = 36,000 units
$22 + $15 + $5 + $12 = $54 per unit.
36,000 x $54 = $1,944,000
Beg inv + units produced - end inv = units sold
DL per unit + Dm per unit + VMOH per unit + FMOH per unit = absorption product cost per unit
Units sold x absorption product cost per unit

The Following Information Applies to Hawks Corporation: Using Absorption