The following information relates to the operations of Cruz Manufacturing during the current year: 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 Selling price per unit $ 12.00 Based on this information, what is the company's cost of goods sold

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