A-LevelAccountingTraditional costing methods9706/12 · Feb/Mar 2016 · Q261 Mark
A business produces and sells watches. In 2015, 4000 watches were produced and 3600 watches were sold. Other information for the year included the following: $ per unit direct materials 60 direct labour 80 variable selling expenses 15 fixed manufacturing overheads 45 fixed administrative costs 50 What is the cost of goods sold for 2015 if the business uses absorption costing?
A$558000
B$666000
C$720 000
D$740000
✓ Correct answer
B: $666000
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