The Leech Corporation reported the following cost information for the production of 106,000 units: (a) direct materials $310,000, (b) direct labor $240,000, (c) period costs $26,000 and (d) overhead costs $260,000. If the company sold 72,000 units, what amount would it report as inventory in its financial statements? As needed, round your final answer to the nearest whole dollar.

Question

Linda Jarvis

Business

20 May, 07:50

The Leech Corporation reported the following cost information for the production of 106,000 units: (a) direct materials $310,000, (b) direct labor $240,000, (c) period costs $26,000 and (d) overhead costs $260,000. If the company sold 72,000 units, what amount would it report as inventory in its financial statements? As needed, round your final answer to the nearest whole dollar.

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Answers (1)

Know the Answer?

Karen Liu · Answer 1

the answer is $268.152

Explanation:

Firstly, you have to sum up all the information and calculate the total cost of producing 106.000 units. Then you can get the cost of each unit and multiply the sold units per unit cost. Once you get that number take the total of the cost of 106.000 less the cost of 72.000 units to get the amount that needs to be reported as inventory

Direct material 106,000.00 2.92 310,000.00

Direct labor 106,000.00 2.26 240,000.00

Period cost 106,000.00 0.25 26,000.00

Overhead cost 106,000.00 2.45 260,000.00

Total cost 106,000 7.8868 836,000

Cost of goods sold = (7.8868*72000) = 567.848

Total inventory - cost of goods sold = (836.000 - 567.848) = 268.152