Big Blue Bubble Company produces a product with the following per-unit costs:
Last year, Gateway produced and sold 750 units at a sales price of $80 each. Total selling and administrative expense was $25,000.
$\begin{array}{lr}
\text { Direct materials } & \$ 15 \
\text { Direct labour } & 10 \
\text { Overhead } & 15
\end{array}$
-Refer to the Figure.What was the cost of goods sold last year?
A)$14,250
B)$30,000
C)$47,500
D)$51,000

Question

Big Blue Bubble Company produces a product with the following per-unit costs:
Last year, Gateway produced and sold 750 units at a sales price of $80 each. Total selling and administrative expense was $25,000.
 $\begin{array}{lr}
\text { Direct materials } & \$ 15 \
\text { Direct labour } & 10 \
\text { Overhead } & 15
\end{array}$
-Refer to the Figure.What was the cost of goods sold last year?
A)$14,250
B)$30,000
C)$47,500
D)$51,000

Quizplus · Accepted Answer

The cost of goods sold (COGS) is calculated by summing the per-unit costs of direct materials, direct labor, and overhead, then multiplying by the number of units sold. COGS = (15 + 10 + 15) * 750 = $30,000.

Big Blue Bubble Company Produces a Product with the Following Direct materials $15 Direct labour 10 Overhead 15\begin{array}{lr}\text { Direct materials } & \$ 15 \\\text { Direct labour } & 10 \\\text { Overhead } & 15\end{array} Direct materials Direct labour Overhead ​$151015​

Big Blue Bubble Company Produces a Product with the Following $\begin{array}{lr}\text { Direct materials } & \$ 15 \\\text { Direct labour } & 10 \\\text { Overhead } & 15\end{array}$